Bitcoin’s bearish sentiments have been paused for a while as it continues to trade between the $18,200 and $20,500 price levels for the past three months. A breakout should be expected from this tight range as soon as volatility expands on the macro level.
After Bitcoin found temporal support at the $18,000 level in June, it formed a higher high and higher low pattern to reach the $25,200 level – an exhaustion point – before falling back to the mentioned support in September. The market saw a slight recovery after the buyers gained control from a short-term perspective.
Last week, Bitcoin attempted to break below this $18,200 support again but failed following a quick recovery. At the time of writing, the price is exchanging hands at around $19,500 after witnessing 8% gains in 5 days.
The latest build-up is looking strong on the intraday trading. If we look at the white resistance line formed on the daily chart, Bitcoin would need to significantly break this trend line before considering a nice bullish reversal.
Another thing to worry about here is the daily volume decreasing on the price chart. This suggests more drops could be underway. On the other hand, Bitcoin could record more gains in the coming days if the buying volume continues to increase.
Bitcoin Price Analysis (BTCUSDT) – Daily Chart
Bitcoin’s volatility is still looking low on the daily graph. In case of volatility increase, the closest resistance to watch for now is the $20,000 level.
The next resistance is the $20,500 level, marked grey on the chart. If a break occurs, we can expect an increase toward the $21,500 resistance level and beyond.
Towards the downside, the first support to keep in mind is the $19000 level. We can expect a retest at $18,200 support levels if the price drops. However, the $18,000 support remains a vital sell signal level for a bearish continuation.
Key Resistance Levels: $20,000, $20,500, $21.500
Key Support Levels: $19,000, $18,200, $18,000
Spot Price: $19,500
Trend: Neutral
Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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Image Source: Photo by Maxim Hopman on Unsplash // Image Effects by Colorcinch
