Today was a relatively uneventful day for Bitcoin (BTC) as the price continues to consolidate in a narrower range.
As noted by Cointelegraph official Rakesh Upadhyay, Bitcoin price spent the weekend consolidating within a bull’s-eye and the breakout to $ 19,418 was quickly undone by overhead resistance.
After the pennant trendline was retouched, the price fell, fell below the 20 MA over the 4 hour period, and briefly dropped the $ 19,000 mark.
In general, most traders seem to think that after a rapid 93% rally from $ 10,300 to $ 19,888, a period of consolidation is needed. Cointelegraph analyst Micheal van de Poppe said:
“In the higher timeframe, Bitcoin is still behaving like last week. We’re still operating in the high resistance zone of all time. I still kept my eyes on $ 16,000 that we ricocheted off and $ 14,000 as those areas could still be retested as support. It’s important to hold $ 19,000, and if we get a daily close below $ 18.9,000, we’ll likely fail. ”
Over the daily and 4 hour period, traders will find the price still making lower highs and higher lows, a sign that the price range is gradually narrowing.
Currently, the price is still holding within the pennant trendline as support, but breaking the structure will require a high volume move as there is ongoing overhead resistance of $ 19,500.
As noted in the previous analysis, if BTC falls below the $ 18,800 level, it looks for support at $ 17,900 and below that between $ 16,000 and $ 15,750.
In the short term, risk averse traders should watch the 4 hour chart closely to see if price can find support again above the 20MA to break the pennant. It is important to note that this move will require significant volume to avoid rejection in the $ 19,400-19,500 resistance zone.
Altcoins typically pump higher during Bitcoin’s consolidation phases, but this time it didn’t.
While a selection of DeFi tokens and other obscure altcoins have risen higher, the majority of the top 20 coins are in the red today.
This may be due to the fact that investors are reluctant to convert funds into altcoins while Bitcoin price is in such an indecisive position.
Seasoned crypto investors know that a strong bullish breakout in BTC can cause altcoin-to-BTC pairs to be smashed, while a bearish collapse in BTC price causes BTC and USD-altcoin pairs to do the same disastrous chub received.
Some standout traits of the day are AAVE up 8.54%, Monero (XMR) up 5.19%, and Waves (WAVES) up 6.23%.
According to CoinMarketCap, the market cap for cryptocurrencies is now $ 566.5 billion and Bitcoin’s dominance index is currently 62.6%.