Bitcoin's (BTC) cost has been showing some slight strength in the previous week as BTC rallied from $10,000 to $11,200. However, the crypto market's overall consensus has been showing weakness with double-digit selloffs for many of the smaller-cap cryptocurrencies.

This selloff appears to have taken hold as Bitcoin cost confirmed $xi,200 as resistance in the previous weekend.

Rejection as $11,200 leads to a downward spiral

BTC/USD 1-day chart

BTC/USD 1-day chart. Source: TradingView

In the previous assay, the $11,000-$11,200 level was identified as a substantial resistance area to break. The significance of this level is very high as the previous consolidation period used the zone every bit a key surface area of support.

If the marketplace wants to go on its up momentum, this zone should be reclaimed as support, making a retest of $12,000 possible.

But since that rejection, the toll of Bitcoin made a new lower high, which means further downwardly momentum is probable in the near term.

All markets are retracing, except the DXY

While the article, crypto, and equity markets have been breaking downwardly, the U.S. Dollar Currency Alphabetize (DXY) has been showing strength.

DXY Index 1-day chart

DXY Index i-24-hour interval chart. Source: TradingView

All over the world, fears of new coronavirus lockdowns are increasing due to rising infection rates. In times of dubiety, investors are looking for "safe" places, making the U.Due south. Dollar the almost preferred place to park value when it comes to cash.

During the crisis of 2000 and 2008, and fifty-fifty the recent market crash in March, the U.S. Dollar was seen as the strongest asset.

The nautical chart above shows a clear support/resistance flip of the 92.75 points level, afterward which a bullish difference was confirmed. It seems likely that continuation toward 95 points is on the horizon unless a rejection occurs in the 93.50-94 range. The downtrend may resume keep if DXY rejects and loses the 92.75 expanse.

If DXY continues to show strength, article and crypto-assets will keep to misbehave. The changed should be expected if DXY shows weakness.

Crypto total market cap embraces the $250-$275 billion zone

Total market capitalization crypto 1-week chart

Full marketplace capitalization crypto 1-week nautical chart. Source: TradingView

The total market capitalization of crypto is still consolidating and correcting from the previous impulse wave. This means a crucial area to hold is the 100-week and 200-week moving averages (MAs), as these indicate the continuation of the balderdash and bear cycles.

Withal, the previous resistance and consolidation area between $250-$275 billion never had a test to confirm the breakout.

In that regard, the greenish area betwixt $250-$275 billion is a very likely area of higher time frame support to be hit.

What'southward adjacent for Bitcoin'southward price?

BTC/USDT 2-hour chart

BTC/USDT 2-hr chart. Source: TradingView

The ii-hour chart shows a clear rejection at the $11,100-$11,300 surface area as the negative expectations of a breakout were met.

However, what's next after such a potent crash in the markets? The $10,200-$10,325 area is a lower time frame support zone and indicators advise that a relief bounce could be on the tables.

The crucial resistance zone to exam and intermission for a bullish continuation is the $10,700-$10,750 area, which is also unlikely to expect at this time.

If this zone fails to break or the price loses the $10,200 area, investors' attention will shift back to the untested level effectually $9,500-$9,700.

This level is still very significant as information technology is virtually the open CME gap.

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