03 Dec 2020 #Bitcoin
After an impressive run to a new all-time high on Dec.1, Bitcoin (BTC) price appears to have entered a short consolidation phase as the price ranges between $18,200 and $19,500. The 1 and 4-hour charts show the price compressing into a pennant-like structure and break out from the pattern would likely see the price move to the $19,400 level where is a bit more resistance.
A breakthrough the pennant would also suggest that the $19,000 level could now function as solid support and if bulls are able to flip the $19,400 to $19,500 zone to support then an attempt at overtaking the new all-time high is expected. As many analysts have pointed out, periods of consolidation and pullbacks to retest underlying support are critically important to sustaining the strength of an uptrend.
Furthermore, if Bitcoin is truly is in a bull market, investors will view major and minor pullbacks as purchasing opportunities. Clear evidence of this can be seen in the daily chart which shows traders buying into every significant dip since mid-October. We can also see that the pattern of daily higher lows is intact even after the most recent strong rejections at the $19,000 level.
If Bitcoin price fails to push through $19,200 or loses the $19,000 level, the volume profile visible range (VPVR) shows there’s support at $18,650 and below this at $17,800. $17,800 is also aligned with the 20-day moving average, a metric that has been respected since the uptrend first began on Oct. 7 when Bitcoin price traded for $10,600.
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