Bitcoin exchange rate consolidated: Traders are looking forward to a range between 18,200 and 19,500 US dollars
The Bitcoin exchange rate is taking a short break as bulls and bears struggle to control the range between US$18,200 and US$19,500.
After an impressive rise to a new all-time high on 1 December, the Bitcoin (BTC) share price has entered a short consolidation phase. The exchange rate currently ranges between USD 18,200 and USD 19,500.
The 1 and 4-hour charts show that the Bitcoin Champion price is consolidating into a pennant-like structure and a breakout from the pattern would probably mean a price move to the $19,400 mark, where there is a little more resistance.
A breakout from the pennant would also indicate that the $19,000 mark could now act as a solid support. If the bulls were to make the zone between $19,400 and $19,500 to provide support, they could try again to reach a new all-time high.
Many analysts have pointed out that phases of consolidation and pullbacks to the underlying support are crucial to maintain the strength of an uptrend.
If Bitcoin really is in a bull market, investors will look at larger and smaller pullbacks as buying opportunities. A clear indication of this is the daily chart, which shows that traders are buying on every significant drop since mid-October.
We also see here that there are still higher lows every day
Even after the recent strong rejections at the level of 19,000 US dollars.
According to the VPVR, if the Bitcoin exchange rate does not get above $19,200 or falls below the $19,000 mark, support will be at $18,650 and below that level at $17,800. $17,800 is also the 20-day moving average. This has been maintained since the beginning of the upward trend on 7 October, when the Bitcoin price was $10,600.
Cointelegraph’s Micheal van de Poppe commented:
„It is quite difficult to make an analysis at the moment. But the longer time frames indicate that there is some overstretching at the moment. If Bitcoin doesn’t break or close above $19,000, I think it will continue to go down.“
Van de Poppe also says that on the weekly and daily charts, $19,000 is the key level for Bitcoin. He warned that a potential bearish divergence could indicate that a reversal is imminent.