After an impressive run of new permanent jobs on December 1, it appears that the Bitcoin (BTC) price has entered a short consolidation phase with the price ranging from $ 18,200 to $ 19,500.
The 1 hour and 4 hour charts show that the price is contracting in a pennant-like structure and exiting the pattern, and we are likely to see the price move to the $ 19400 level where there is a bit more resistance.
The break of the flag also indicates that the $ 19,000 level can now act as solid support, and if the bulls can turn the $ 19,400 into the $ 19,500 area of support, a new attempt is expected to skip all. Time is high.
As noted by many analysts, periods of consolidation and failure to test fundamental support are essential to maintaining the trend’s strength.
Additionally, if Bitcoin is indeed in a bull market, investors will see large and small withdrawals as buying opportunities. The clear evidence of this can be seen on the daily chart, which shows that traders have been buying on every major drop since mid-October.
We can also see that the daily higher lows pattern remained unchanged even after the recent strong rejection at $ 19,000.
If the Bitcoin price does not exceed $ 19,200 or lose the $ 19,000 level, the Visual Volume Profile (VPVR) area shows support at $ 18,650 and below $ 17,800. $ 17,800 was also revised using the 20-day moving average, which is the calculation that has been followed since the trend first started on October 7, when Bitcoin was priced at $ 10,600.
According to Cointelegraph contributor Michael Van de Pope:
“It’s very difficult to do some analyzes at the moment, but higher timeframes indicate that there is some extra time at the moment. If Bitcoin does not break or close above $ 19,000, I think we will reverse.”
Van de Poppe also suggested that the weekly timeframe to stick to is $ 19,000 and it is in line with the daily chart. He warned that a possible downward rejection could indicate a reversal in the short term.
What if bears take control?
In the event that Bitcoin price makes a downward turn, breaching the current range and losing support of $ 17,800 in the 20-MA, a fresh test of the 23.6% Fibonacci retracement could be taken at $ 16,100.
The VPVR on the daily timeframe also shows interest around $ 15,700, but as we mentioned earlier, the price has been in line with the 20-MA since early October.
It is also evident that both retail and institutional investors have shown a strong interest in buying a significant drop, so this trend is unlikely to end even if BTC loses its current territory.