We all know that the world’s largest cryptocurrency, Bitcoin touched an all-time high on December 1. Bitcoin’s price appears to have joined a short consolidation phase as its cost varies from $18,200 to $19,500.
Furthermore, the one and four-hour charts reveal the price consolidating into a pennant-like structure and break out from the pattern would possibly see the price move to the $19,400 level, where is a bit more resistance.
Besides, a breakthrough the pennant would imply that the $19,000 level could now function as a reliable support. If bulls can flip the $19,400 to $19,500 zone to support, then reaching the new record is anticipated.
According to several analysts, periods of consolidation and pullbacks to retest underlying support are critically essential to maintaining an uptrend’s strength.
Moreover, if Bitcoin is truly is in a bull market, investors will view major and minor pullbacks as buying opportunities. According to the daily chart, it shows traders buying into every significant dip since the middle of October.
Additionally, the daily higher lows pattern is the same even after the most recent substantial fall at the $19,000 level.
Suppose the Bitcoin’s price fails to push through $19,200 or loses the $19,000 level; the volume profile and visible range confirm their support at $18,650 and below this at $17,800.
Significantly, the $17,800 level aligns with the 20-day moving average. A metric recognized since the rise started on October 7 when BTC traded at $10,600.
If BTC does not break or close over $19K, we will reverse
According to Micheal van de Poppe, it isn’t easy to analyze at this point, but the higher timeframes show some overextension. If the world’s largest cryptocurrency does not break or close over $19K, he thinks we will reverse.
Furthermore, Van de Poppe also implied that the crucial area to hold one the weekly timeframe is $19,000 and on the daily timeframe. He warned that a potential bearish divergence could be indicating that a reversal in the shorter term.
If BTC price becomes bearish by falling from the current range and losing the $17,800 support at the 20-MA, a retest of the 23.6% Fibonacci retracement at $16,100 is likely.
The VPVR on the daily timeframe also indicates the interest of about $15,700. However, the price has respected the 20-MA since early October.
Retail and institutional investors have shown a strong interest in buying significant dips. It’s doubtful that this trend will end even if Bitcoin loses the current range.