Bitcoin Price Consolidation
Since Thanksgiving, Nov. 24, Bitcoin $16,549 has been trading in a narrow range, as traders are unsure of the next directional move. In a bear market, analysts typically become uber-bearish and project targets that scare away investors.
Several bearish targets, up to $6,000, have emerged due to Bitcoin’s failure to start a strong recovery.
In a bear market, anything is possible, but long-term investors might try to gather fundamentally sound coins in various tranches. A bottom can only be confirmed in hindsight, so trying to time it is typically pointless.
In a bear market, not all currencies fall at the same time. As a result, in addition to monitoring the broader crypto market, traders should carefully monitor their chosen currency.
When the next bull market starts, cryptocurrencies that helped the market out of the previous bear market do well. Let’s take a look at the cryptocurrency charts that are attempting to start a short-term uptrend. Bitcoin’s price has been stable between $15,588 and $17,622 for the last few days. A bullish divergence in the relative strength index (RSI) suggests that selling pressure may be lessening.
The downtrend might end if buyers propel the price above the overhead zone. If the uptrend can get past the 50-day simple moving average ($18,600), which may act as a small roadblock, it may eventually reach the psychological level of $20,000. A balance between supply and demand can be seen on the 4-hour chart because the moving averages have flattened out, and the RSI is close to its middle value. This balance may shift in favor of the bulls if the price rises above $17,000. The pair could then rise to the $17,622 overhead resistance.
If the price falls below $16,000, the pair may fall to the critical support zone between $15,588 and $15,476.