KEY POINTS
- Bitcoin breached previous $19,000 after testing assist at $17,600
- The quantity seems to be weak within the new upsurge
- A upsurge is feasible provided that there’s robust quantity
After an enormous sell-off final week, analysts expect a bullish run for Bitcoin within the coming days.
Bitcoin closed at $19,166 Sunday after briefly touching $17,600 two days earlier than. Many have pointed that this drop was due to whales, or holders of huge quantities of Bitcoin, who dumped their Bitcoins on exchanges. Many retail merchants additionally didn’t miss the chance to promote close to Bitcoin’s earlier all-time excessive stage.
On-chain metrics present that the logical Bitcoin backside was truly at $17,000, the place various massive orders have been ready to be fulfilled, Cointelegraph stated. Nonetheless, massive cryptocurrency exchanges like Bitfinex even have massive orders at $17,600.
Now that the sell-pressure has subsided, analysts suggest the possibility of Bitcoin reaching $19,400 is around the corner, and breaching the level could put Bitcoin at a new all-time high.
For the new price rally to get sustained, there must be strong volume. The bounce to $19,000, unfortunately, was supported by low volume, so the possibility of breaching $19,400 appears weak.
The 4-hour chart gives a clear view of where the price is in the short term. There have been three “impulse surges” since Dec. 11 on declining volume. After reaching $17,600, the price quickly bounced to make a quick takeover of $18,000. The price crawled slowly to make another impulse upward, from $18,400 to $18,800. This was immediately followed by a move from $18,800 to $19,250 after eight hours.
The volume has declined after every move and it appears weak to sustain the $19,250 level. For the rally to continue, $19,000 resistance must become a support level. A fakeout is likely if $19,000 fails to get sustained. Cointelegraph warned of a possible retest of $16,000 and $14,000 if the assist at $18,000 is damaged.
