Following an impressive rally to a new climax always on December 1, Bitcoin (BTC) price seems to have entered a small consolidation period, as the price ranges from $ 18,200 to $ 19,500.
The 1 and 4 hour charts show that the price is compressed into a penny-like structure and when leaving the pattern, the price is likely to move to USD 19,400, where there is a little more resistance.
The pennant cut would also suggest that the $ 19,000 level could now act as solid support. And if the bulls can turn the $ 19,400 to $ 19,500 zone into support, we could always expect an attempt to break above the new high.
As many analysts have noted, periods of consolidation and setbacks where basic support is re-tested are vitally important to maintaining uptrend strength.
Also, if Bitcoin is actually in a bull market, Investors will see the biggest and smallest disadvantages as ideal buying opportunities. Clear evidence of this can be seen on the daily chart showing traders buying at every significant fall since mid-October.
We can also appreciate that the higher daily lows pattern is intact even after the latest strong rejections at the $ 19,000 level.
If the Bitcoin price fails to break above $ 19,200 or misses the $ 19,000 level, The Visible Volume Profile Range (VPVR) shows support at $ 18,650 and below that at $ 17,800. The $ 17,800 level is also in line with the 20-day moving average, a metric that has been adhered to since the uptrend began Oct. 7. when the price of Bitcoin was $ 10,600.
According to contributor Cointelegraph, Micheal van de Poppe:
“It is very difficult to do an analysis at this point, but the longer time frames indicate that there is an over-extension at this point. If Bitcoin doesn’t break out or close above $ 19,000, I think we’re going to reverse. “
Van de Poppe suggested that too In the weekly and daily framework, the critical area to maintain is USD 19,000. He warned that a potential bearish diversion could be suggesting a short-term reversal.
What if the bears take over?
If the Bitcoin price takes a bearish turn as it falls from the current range and loses support of $ 17,800 on the 20-day moving average, it can retest the level of the 23.6% Fib at $ 16,100.
The VPVR on the daily frame shows interest near the $ 15,700 level, but as mentioned above, the price has respected the 20-day moving average since early October.
It is also clear that retail and institutional investors have shown a strong interest in buying during the most significant downturn, so it seems unlikely that this trend will end even if BTC loses the current range.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and business move involves risks, you have to do your own research when making a decision.
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