While Bitcoin (BTC) is in a range between $6,800-$8,200, some altcoins have shown impressive movements during the past week. Some examples are MATIC (+83%) and RVN (+46%). These movements generally occur during low volatility periods in Bitcoin.

Crypto market daily performance

Crypto market daily functioning. Source: Coin360

Now that Bitcoin is attempting to rally higher up $7,600, into its previous trading range, new analysis and perspectives are needed in gild to see if the market place can provide continued upside movement for altcoins.

Bitcoin stuck in a bearish range

Bitcoin's trend nevertheless favors the downside every bit is shown in the 12-hour chart below.

BTC USD 12-hour chart

BTC USD 12-hour chart. Source: TradingView

The trend is nevertheless down where lower highs and lower lows are created. Nevertheless, the price temporarily found a bottom at $6,500-$6,800. Since that bottom formation, a range is defined between $six,800 and $7,800, in which the $7,800 area is the upper resistance zone.

Some other indicator providing range-jump confirmations is the decrease of volume within such a range. During the dropdown from $8,400 to $6,500 the price started to accelerate, which caused the book to increase. Yet, the moment the price is inside a range, volume usually decreases and goes away. The consequence is that the weird "Bart Simpson" design happens and liquidation hunts occur.

Why? The volume is overall lower, which also means that order books are thin. This results in more than effortless terminate hunt movements as the required volume to execute such a motion is much lower.

Support spotted on the iv-hr chart

BTC USD 4-hour chart

BTC USD 4-hr nautical chart. Source: TradingView

The 4-hr chart is showing the aforementioned range levels. The toll couldn't clear the $vii,800 resistance, through which the toll retraced towards the green area effectually $7,000 for a support examination.

This confirmed back up (including bullish divergences on smaller fourth dimension frames), and the cost moved back up towards the upper parts of the range in the $7,800 surface area.

The $7,400 level is about important for at present as this is a salubrious horizontal level where the toll needs to hold to justify a continued trend upwards.

Falling wedge bottom construction

BTC USD 2-hour chart

BTC USD 2-hr nautical chart. Source: TradingView

The two-60 minutes chart shows a falling wedge construction, which led to the breakout to $7,800. However, the aforementioned day the price retraced back towards the previous back up surface area in which the green zone once again confirmed the support area.

Then, a natural slow gain towards the $7,400 area occurred, and now the toll finally broke through this level upwards (as is recognized by the arrow).

Total market cap stuck in falling wedge structure

Total market capitalization chart

Total market capitalization chart. Source: TradingView

The total market capitalization is showing a similar structure as Bitcoin. Yet, it's more than of a falling wedge structure rather than a downwards trending aqueduct (fifty-fifty though the two don't take many distinguishing characteristics).

In this regard, the purple area is still holding as support while the resistance defines the upper range at $213 billion.

Is the pattern repeating again?

Total market capitalization chart

Full market capitalization chart. Source: TradingView

The contempo movements of the cryptocurrency market are showing similarities with the movements that took place throughout October. Through that, an upwards push is quite likely to occur towards the $215-217 billion zones (similar to the movements in October).

If this occurs, market liquidity is taken to the upside, which would brand the marketplace bullish overall. If the toll is one time again rejected at that resistance area, it's probable that a retest of the purple area is needed. Through that the price is able to get the liquidity from the downside and create bullish divergences, by and large marking a bottom formation.

Would that be bad?

Not at all!

Remember that the price came from $iii,100 earlier this year and is currently testing at which level support tin be found (and a potential higher low). If the cost and total market capitalization can exercise that here, marketplace performance in 2022 could be astounding. The question is, what is needed for bullish perspectives over the brusque term?

Bullish scenario

BTC USD bullish scenario

BTC USD bullish scenario. Source: TradingView

Still, several scenarios can authorize for a bullish scenario. The short term vision is quite strict in which the $7,400 expanse plays an important role. The green area effectually $vii,400 needs to be maintained as support in this scenario. If that'due south the case, continuation towards the $7,800 resistance and the chief upper resistance zone at $8,200 is likely to occur.

However, flipping towards a bigger horizon, the toll needs to articulate that $viii,200 area to confirm a trend shift. Why? Well, through that push, the cost will be able to interruption the downtrend and start a potential upwards trend.

Bearish scenario

BTC USD bearish scenario

BTC USD bearish scenario. Source: TradingView

The bearish scenario needs a bit more explanation. Either way, a exam of $7,800 could occur through which a hard rejection (preferably a wick and instant dropdown) needs to occur. This is most likely to be followed by a drop beneath $7,400.

Notwithstanding, on the other manus, if $7,400 doesn't provide the required support, this bearish outlook could play out as well.

Would one look to run into the lower expanse to concur support then? To be honest, it seems unlikely but traders volition be watching closely to see further downside in which the $6,800 region becomes interesting. It might fifty-fifty be possible to clear the liquidity below the lows before the cost can surge to $8,000.

Looking forward

information technology is clear that Bitcoin's volatility is decreasing and could remain low for a couple of weeks. The range is defined by the $6,800 to $8,000 expanse where Bitcoin toll could be hover for a few weeks before it tests the downward trendline.

What does that mean for price activeness inside the altcoin market? Maybe, altcoins volition have more space to make their moves and these range-jump plays are quite attractive for leverage traders.

Don't get stressed out by minimal movements of Bitcoin inside a tightening range —  focus on the longer timeframe.

The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves take a chance. You should conduct your own inquiry when making a decision.