After an impressive run to a new all-time record on December 1, the price of Bitcoin (BTC) seems to have entered a short phase of consolidation, as the price varies between 18,200 and 19,500 dollars.
The 1- and 4-hour charts show that the price is compressing into a pennant-like structure, and exiting the model is likely to move the price to the $ 19,400 level, which is slightly more resistant.
Breaking the flags would also suggest that the $ 1
As many analysts point out, periods of consolidation and re-testing discounts on core support are crucial to maintaining the strength of the uptrend.
In addition, if bitcoin is indeed a bull market, investors will consider large and insignificant discounts as buying opportunities. Clear evidence of this can be seen in the daily chart, which shows that traders are buying every significant decline since mid-October.
We can also see that the model of higher daily levels is intact even after the last strong failures at the level of 19,000 dollars.
If the price of bitcoin fails to push $ 19,200 or loses the level of $ 19,000, the visible scope of the volume profile (VPVR) indicates that it has support at $ 18,650 and below that at $ 17,800. $ 17,800 is also aligns with the 20-day moving average, an indicator followed by an uptrend that first began on October 7, when the price of bitcoin traded at $ 10,600.
According to Cointelegraph contributor Michael van de Pope:
“It is quite difficult to do any analysis at this time, but the higher time frames show that there is some overstretching at this time. If bitcoin doesn’t break or close above $ 19K, I think we’ll turn around. “
Van de Pope also suggested that one weekly time frame, which is crucial for detention, is $ 19,000 and the daily time frame. He warned that the potential bearish divergence could hint at a reversal in the short term.
What if the bears take control?
In the event that the price of bitcoin takes a bearish turn, dropping out of the current range and losing support from $ 17,800 to 20-MA, it is possible to re-test the Fibonacci correction of 23.6% at $ 16,100.
The VPVR of the daily time frame also shows interest at around $ 15,700, but as mentioned earlier, the price has followed 20-MA since early October.
It is also clear that retail investors and institutional institutions 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 views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every move of investment and trading involves risk. You need to do your own research when making a decision.