Bulls eye the $19.5K resistance but low volume keeps Bitcoin price sideways


At the moment was a comparatively uneventful day for Bitcoin (BTC) as the value continues to consolidate right into a tighter vary. 

As talked about by Cointelegraph contributor Rakesh Upadhyay, Bitcoin value spent the weekend consolidating inside a bull pennant and the breakout to $19,418 was shortly stamped out by overhead resistance.

After retouching the pennant trendline, the value gave approach, falling under the 20-MA on the 4-hour time-frame and briefly dropping the $19,000 mark.

Crypto market each day value chart. Supply: Coin360

Typically, most merchants appear to agree that after a raging 93% rally from $10,300 to $19,888, a interval of consolidation is critical. Cointelegraph analyst Micheal van de Poppe said:

“On the upper timeframe, Bitcoin continues to be performing because it was final week. We’re nonetheless performing within the all-time excessive resistance zone. I nonetheless have my eyes on $16K, which we bounced from, and $14K as these areas nonetheless could possibly be retested as assist. Holding $19K is vital and if we now have a each day shut under $18.9K I believe we’ll fall by.”

On the each day and 4-hour timeframe merchants will observe that the value continues to be notching decrease highs and better lows, an indication that the value vary is starting to slender.

BTC/USDT 4-hour chart. Supply: TradingView

At present the value continues to be holding inside the pennant trendline as assist however a breakthrough the construction would require a excessive quantity transfer as there may be persistent overhead resistance at $19,500.

As talked about in earlier evaluation, a drop under the $18,800 stage will see BTC seek for assist at $17,900, and under that the $16,000 to $15,750 vary.

For the quick time period, risk-averse merchants are more likely to hold an in depth eye on the 4-hour chart to see if the value can once more discover assist above the 20-MA as a way to burst by the pennant. It’s imporant to notice that this transfer would require signifanct quantity to keep away from rejection within the $19,400-$19,500 resistance zone.

Bitcoin each day value chart. Supply: Coin360

Usually, throughout Bitcoin’s consolidation phases altcoins pump increased however that has not been the case this time.

Whereas a choice of DeFi tokens and different obscure altcoins have moved increased, the vast majority of the top-20 cash are within the crimson at present.

That is presumably because of the truth that buyers are reluctant to shift funds into altcoins whereas the Bitcoin value is in such an indecisive place.

Skilled crypto buyers know {that a} robust bullish breakout from BTC may lead to altcoin-to-BTC pairs being crushed, whereas a bearish breakdown in BTC value tends to lead to BTC and USD altcoin pairs receiving an equally catastrophic pummeling.

A number of standouts of the day are, AAVE with a 8.54% achieve, Monero (XMR) which moved 5.19% increased and Waves (WAVES) which has rallied 6.23%.

In accordance with CoinMarketCap, the general cryptocurrency market cap now stands at $566.5 billion and Bitcoin’s dominance index at the moment at 62.6%.