Bitcoin (BTC) price appears to be taking a short breather after hitting a new 2020 high of $ 15,960 on November 5th.
The 1 hour and 4 hour timeframe shows the price is being compressed within a flag and for most of the trading day the $ 15,500 level was held as a support. $ 15,750 is the level Bitcoin needs to break to take another stab at $ 16,000.
A dragonfly doji candle formed within the past hour as the price fell to test the lower support of the bull flag at $ 15,166 and as the formation nears its terminus traders, a breakout will be sought as the formation approaches Penetrates the $ 15,500 to $ 15,600 level A high volume VPVR node lurks.
It is clear that there is a bit of a row between bulls and bears, and flipping the $ 15,600 level to support with a 4-hour close increases the likelihood of BTC making a third run at the $ 16,000 mark.
The RSI also continues to climb above 70, a bullish signal, but the daily volume of purchases has decreased slightly after some traders secured profits as BTC rose to $ 15,900.
Alternatively, a drop below the flag support at $ 15,100 opens the door for a touch of the 20-MA at $ 14,680. The rapid, almost vertical eruption from November 4th to 5th took place without “new support”. As can be seen from the volume profile, there is a visible gap between $ 13,900 and $ 15,500.
In the event that the price drops below $ 15,100 and buyers don’t see this as an opportunity to purchase burglaries, there is the option of retesting the $ 14,000-13,800 level for assistance.
While a 9% decline and $ 1,400 isn’t nerve-wracking, lower support retests after strong rallies like this one this week are perfectly natural and healthy.
Altcoins are finally finding their way
As Bitcoin price searches for direction, altcoins have regained a small portion of the vast territory that has been lost in the past two months. Ether (ETH) has been the most notable leader in the last few days, as the altcoin rose to $ 447 and is currently trying to break the resistance at $ 450.
Yearn Finance (YFI) also took a strong move as it rose more than 30% to $ 11,100. Uniswap’s UNI token also caused a stir with a plus of 15.5% and is currently trading at USD 2.53.
According to CoinMarketCap, the market cap for cryptocurrencies is now $ 444.6 billion and the dominance rate of Bitcoin is 64.7%.