Bitcoin price consolidates as traders contest the $18.2K to $19.5K range

After a formidable run to a brand new all-time excessive on Dec.1, Bitcoin (BTC) value seems to have entered a brief consolidation part as the worth ranges between $18,200 and $19,500. 

The 1 and 4-hour charts present the worth compressing right into a pennant-like construction and escape from the sample would seemingly see the worth transfer to the $19,400 degree the place is a little more resistance.

BTC/USDT 4-hour chart. Supply: TradingView

A breakthrough the pennant would additionally counsel that the $19,000 degree may now operate as strong assist and if bulls are in a position to flip the $19,400 to $19,500 zone to assist then an try at overtaking the brand new all-time excessive is predicted.

As many analysts have identified, intervals of consolidation and pullbacks to retest underlying assist are critically necessary to sustaining the power of an uptrend.

Moreover, if Bitcoin is really is in a bull market, buyers will view main and minor pullbacks as buying alternatives. Clear proof of this may be seen within the day by day chart which reveals merchants shopping for into each important dip since mid-October.

BTC/USDT day by day chart. Supply: TradingView

We will additionally see that the sample of day by day increased lows is undamaged even after the latest sturdy rejections on the $19,000 degree.

If Bitcoin value fails to push by means of $19,200 or loses the $19,000 degree, the quantity profile seen vary (VPVR) reveals there’s assist at $18,650 and beneath this at $17,800. $17,800 can also be aligned with the 20-day shifting common, a metric that has been revered because the uptrend first started on Oct. 7 when Bitcoin value traded for $10,600.

Based on Cointelegraph contributor Micheal van de Poppe:

“It’s fairly troublesome to make any evaluation at this level however the increased timeframes point out that there’s some overextension at this level. If Bitcoin doesn’t break or shut above $19K, I feel we’re going to reverse.”

Van de Poppe additionally advised that one the weekly timeframe the essential space to carry is $19,000 and on the day by day timeframe. He cautioned {that a} potential bearish divergence may very well be hinting {that a} reversal within the shorter time period.

What if bears take management?

Within the occasion that Bitcoin value takes a bearish flip by dropping from the present vary and dropping the $17,800 assist on the 20-MA, a retest of the 23.6% Fibonacci retracement at $16,100 is feasible.

The VPVR on the day by day timeframe additionally reveals curiosity round $15,700, however as talked about earlier, the worth has revered the 20-MA since early October.

It is also clear that retail and institutional buyers have demonstrated a powerful curiosity in shopping for important dips so it appears unlikely that this development will finish even when BTC loses the present vary.

The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph. Each funding and buying and selling transfer entails danger. It is best to conduct your personal analysis when making a choice.