Bitcoin (BTC) at the $ 19,500 resistance level was rejected again on Dec 4th as traders became increasingly unsure of what happened next with BTC / USD.
The Bitcoin Rally remains at $ 19,500
Some expect the dominant cryptocurrency to consolidate or make other small adjustments in the near future, especially when the US dollar shows signs of a potential recovery.
However, others are expecting a critical $ 18,500 support level, which will likely force BTC to try a $ 20,000 pivot level and a new permanent high in the near future.
In the short term, traders generally expect two important levels of support and resistance for Bitcoin. First, the $ 18,500 area is critical to maintaining the bullish BTC market structure. Second, the $ 19,500 level is a dangerous BTC resistance level. If BTC crosses $ 19,500, traders expect a new high to a permanent high, which is currently below $ 20,000.
Meanwhile, Bitcoin trading became more difficult due to fluctuations in the $ 19,500 resistance level. BTC has sold off sharply every time I tested this area in the past week.
The nickname “CryptoGainz” believes that the ideal entry point for Bitcoin traders is now above the $ 19,500 resistance level. However, this cannot be for two reasons: It puts traders at risk of over-selling at a steady high as $ 20,000 remains a high-risk selling wall for the bulls. He said:
“What worries me about this price action is that in the event that my bids are not met, I will have to extend the breakout, which is currently putting me at 19.7K or higher, which means my list is unsure about compensation, i.e. epic dash (read: 10% +) Impulsive movement at this level. ”
Selling whales below their perpetual height is the main reason Bitcoin fluctuates so much every time it approaches $ 19,500.
CryptoQuant CEO Ki Yung Ju told Cointelegraph that the flow of whales peaked eight months later when BTC approached $ 20,000. Joe noted that selling whales and major miners put bitcoin at risk of a correction.
In the short term, this could mean Bitcoin could face weeks of sideways consolidation or a deeper correction, according to Key. Moreover, he added, foreign exchange reserves are not shrinking as they did in the mid-1920s. It appears that whales may leave Bitcoin on the exchanges to sell if the bitcoin price rises. He explains:
If you look at the average flow across all exchanges (144 MA masses), it crossed over 2 BTC a few hours ago. We got to 2.5 BTC at a price of $ 20,000. It’s been eight months since the big sale. in March. Given the average exchange current (72 hr MA), whales are no longer far from centers. I think they are keeping BTC on exchanges to make it available for sale. If we look at the mining center index, the miners are selling bitcoins. strong. ”
A bullish case for Bitcoin in the near future
If bitcoin rises above the soon-to-be $ 19,500 resistance level, buyers have a chance to regain control of the market.
A trader known as CryptoCapo said that “the bears don’t want the price to exceed $ 19,500,” and the bulls don’t want the price to drop below $ 18,500.
But if the bulls gain the upper hand, the $ 20,000 level will be the next area – and perhaps the most important psychologically – to protect the bears in the near future. Other traders like CryptoGainz also stated that $ 19,650 is the level that could trigger a new Bitcoin hack in the near future.
Meanwhile, MicroStrategy, a $ 3 billion trade intelligence group, bought another $ 50 million of Bitcoin at today’s price level, another bullish factor for bitcoin.
The public company announced the purchase of Bitcoin for $ 250 million on August 11, according to Cointelegraph reports. In September, the company purchased an additional $ 175 million in BTC, increasing its holdings of BTC to around 38,000 BTC. The doubling of MicroStrategy purchases shows that the company believes that $ 19,000 may be the starting point for Bitcoin’s next rally.
This news also stems from the fact that greyscale actually added thousands of bitcoins to assets in December alone. As Cointelegraph reported earlier this week, Grayscale Bitcoin Trust bought 55,000 BTC in November, double the total BTC mined this month.
As such, it remains to be seen whether this institutional purchase will be able to counteract the decline in whale and miner sales next month.
Short term decrease
Technically speaking, Bitcoin’s bearish scenario revolves around the $ 18,500 support level over the next few days. If BTC loses support and drops below $ 18,500, technical analysts say an even bigger drop may occur. Under $ 18,500, the next big range of public support is the $ 16,000 to $ 16,500 series that BTC tested on November 26.
Michael Van de Pope, dealer resident at the Amsterdam Stock Exchange,