After an impressive rally to a new all-time high on December 1st Bitcoin’s price (BTC) appears to have entered a small phase of consolidation as the price is between $ 18,200 and $ 19,500.
The 1 and 4 hour charts show that The price will be compressed into a pennant-like structure, and upon exiting the pattern, the price should hover to the $ 19,400 level. where there is a little more resistance.
The pennant breakout would also suggest that the $ 19,000 level could now serve as solid support. And if the bulls can turn the $ 19,400-19,500 zone into support, we could expect an attempt to break above the new all-time high.
As many analysts have pointed out, Consolidation periods and pullbacks, during which the underlying support is retested, are critical to maintaining the strength of an uptrend.
Even if Bitcoin is really in a bull market, Investors see the largest and smallest withdrawals as ideal buying opportunities. Clear evidence of this can be seen on the daily chart, which shows traders have been buying on every significant drop since mid-October.
We can appreciate that too The higher daily lows are still intact after the recent strong rejections at the $ 19,000 level.
If the price of Bitcoin is not above $ 19,200 or loses the $ 19,000 level, The Volume Profile Visible Range (VPVR) shows there is support at $ 18,650 and below at $ 17,800. The $ 17,800 level is also in line with the 20-day moving average, a metric that has been maintained since the uptrend began on October 7th. when the price of Bitcoin was $ 10,600.
According to the Cointelegraph employee Michael van de Poppe::
“At this point it is very difficult to do an analysis, but the longer periods of time indicate that there is overextension at this point. Unless Bitcoin breaks out or closes above $ 19,000, we will likely turn back. “
Van de Poppe suggested that too On a weekly and daily basis, the $ 19,000 critical area is critical to maintenance. He warned that a possible bearish divergence could point to a near-term reversal.
What if the bears take over?
In the event Bitcoin price takes a bearish turn as it falls out of current range and loses the USD 17,800 support on the 20-day moving average, It may retest the 23.6% fib retracement level at $ 16,100.
The daily VPVR is showing interest near the USD 15,700 level, but as noted, the price has held the 20-day moving average since the beginning of October.
It is also clear that retail and institutional investors have shown great interest in buying during the biggest downturns. Hence, even if BTC loses current range, this trend is unlikely to end.
The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.