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After an impressive run to a new all-time high on December 1, the price of Bitcoin (BTC) appears to have entered a short phase of consolidation, with the price varying between $ 18,200 and $ 19,500.
The 1 and 4 hour charts show that the price is compressing into a pennant-like structure and breaking the pattern would likely see the price move to the $ 19,400 level, where there is a bit more resistance.
A breakout from the pennant would also suggest that the $ 19,000 level may now function as strong support and if the bulls are able to return the $ 19,400 area to $ 19,500 for support then an attempt to break through the new all-time high. is expected.
As many analysts have pointed out, periods of consolidation and pullbacks to retest underlying support are critically important to maintaining the strength of an uptrend.
Additionally, if Bitcoin is truly in a bull market, investors will see both major and minor pullbacks as buying opportunities. Clear evidence of this can be seen in the daily chart which shows traders buying in every significant drop since mid-October.
We can also see that the pattern of higher daily troughs is intact even after the most recent releases at the $ 19,000 level.
If the Bitcoin price fails to hit $ 19,200 or loses the $ 19,000 level, the Volume Profile Visible Range (VPVR) shows that there is support at $ 18,650 and below at $ 17,800. $ 17,800 is also aligned with the 20-day moving average, a measure that has been respected since the uptrend began on October 7, when the price of Bitcoin traded at $ 10,600.
According to a Cointelegraph contributor Micheal van de Poppe:
“It’s quite difficult to do an analysis at this point, but the longer time frames indicate that there is overextension at this point. If Bitcoin doesn’t break or close above $ 19,000, I think we’re going to backtrack. ”
Van de Poppe also suggested that one of the Crucial Area to Keep weekly deadlines is $ 19,000 and on the daily schedule. He warned that a potential bearish divergence could hint at a near-term reversal.
What if the bears take control?
In the event that the price of Bitcoin takes a bearish turn moving from the current range and losing the support of $ 17,800 to 20-MA, a retest of the 23.6% Fibonacci retracement at $ 16,100 is possible.
The VPVR on the daily calendar also shows interest around $ 15,700, but as mentioned earlier, the price has been on the 20-MA since early October.
It’s also clear that retail and institutional investors have shown a strong interest in buying significant declines, so it seems unlikely that this trend will end even if BTC loses the current range.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You need to do your own research when making a decision.
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