Bitcoin value consolidates as merchants contest the $18.2K to $19.5K vary

After a formidable run to a brand new all-time excessive on Dec.1, Bitcoin (BTC) value seems to have entered a brief consolidation section 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 get away from the sample would probably 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 recommend that the $19,000 degree might now operate as stable help and if bulls are capable of flip the $19,400 to $19,500 zone to help then an try at overtaking the brand new all-time excessive is predicted.

As many analysts have identified, durations of consolidation and pullbacks to retest underlying help are critically essential to sustaining the energy of an uptrend.

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

BTC/USDT day by day chart. Supply: TradingView

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

If Bitcoin value fails to push by means of $19,200 or loses the $19,000 degree, the amount profile seen vary (VPVR) exhibits there’s help 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 for the reason that uptrend first started on Oct. 7 when Bitcoin value traded for $10,600.

In response to 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 $19Ok, I feel we’re going to reverse.”

Van de Poppe additionally instructed 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 shedding the $17,800 help 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 exhibits 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 traders have demonstrated a powerful curiosity in shopping for vital dips so it appears unlikely that this pattern will finish even when BTC loses the present vary.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph. Each funding and trading transfer includes danger. You need to conduct your personal analysis when making a choice.