Bitcoin price is consolidating as traders contest the $ 18.2,000 to $ 19.5,000 range


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After an impressive spike to a new all-time high on December 1, Bitcoin (BTC) price appears to have entered a brief period of consolidation as the price ranges between $ 18,200 and $ 19,500.

The 1 and 4 hour charts show how the price compresses into a pennant-like structure. If you break out of the pattern, the price will likely move to the $ 19,400 level where there is a little more resistance.

BTC / USDT 4-hour chart. Source: TradingView

A break in the pennant would also suggest that the $ 19,000 level could now act as solid support. If bulls are able to flip the zone from $ 19,400 to $ 19,500 in support, an attempt to overtake the new all-time high is expected.

As many analysts have pointed out, periods of consolidation and retreats to re-examine underlying support are critical to maintaining the strength of an uptrend.

If Bitcoin is really in a bull market, investors will see pullbacks, both large and small, as buying opportunities. Clear evidence of this is the daily chart, which shows traders buying into each significant decline since mid-October.

BTC / USDT daily chart. Source: TradingView

We can also see that the pattern of daily higher lows is intact even after the recent strong rejections at the $ 19,000 level.

If the Bitcoin price does not hit $ 19,200 or loses the $ 19,000 level, the visible area of ​​the Volume Profile (VPVR) shows that the support is at $ 18,650 and below at $ 17,800. $ 17,800 is also the 20-day moving average, a metric that has been maintained since the uptrend began on October 7th when Bitcoin price traded at $ 10,600.

According to Cointelegraph employee Micheal van de Poppe:

“It’s quite difficult to do an analysis at this point, but the higher timeframes suggest that there is some overstretching at this point.” Unless bitcoin breaks or closes above $ 19,000, we will likely turn back. ”

Van de Poppe also suggested that one of the weekly time frames is the crucial area and the daily time frame is $ 19,000. He warned that a possible bearish divergence could point to a near-term reversal.

What if bears take control?

In the event Bitcoin price takes a bearish turn by falling out of the current range and losing the $ 17,800 support at the 20-MA, the Fibonacci retracement can be retested at 23.6% at $ 16,100 .

The VPVR on the daily timeframe also shows an interest of around $ 15,700, but as mentioned earlier, the price has been respecting the 20 MA since early October.

It’s also clear that retail and institutional investors have shown a keen interest in buying significant slumps, so this trend is unlikely to end even if BTC loses current bandwidth.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.