BTC Consolidates Around $20k After recovering slightly from the $18.7k mark a few days ago, Bitcoin price is currently consolidating around the 2017 ATH level. However, the crypto market is yet to show any signal of a trend reversal. to increase.
As seen in the following chart, the price has formed lower highs and lower lows, a signal of strong bearish momentum. Accordingly, Bitcoin (BTC) has yet to form a new higher high on the daily timeframe. Therefore, a rally cannot be predicted until it develops a reversal pattern and prints a top above the critical $32K level.
On the other hand, a prolonged period of consolidation can lead to another downside move towards the key $16.6k level.
4 hour chart
Over the past few weeks, $18K has been a good support for the Bitcoin price. In addition, the lower border of the triangle also supported the price, prompting a breakout of the midline of the channel.
The price was rejected after breaking through the midline of the channel and failed to test the upper trendline of the triangle. However, the most recent shake may be a retest of the midline of the channel. If Bitcoin successfully forms a pullback, there is a high chance that the price will break out of the triangle.
However, if the triangle pattern and significant support at $18K are broken, a sharp drop is likely to follow.
Taker Buy Sell Ratio of BTC (SMA 50)
The Taker Buy Sell Ratio is shown on the following chart, indicating whether buyers or sellers are more active in the order book. A value above 1 implies strong demand in the market, while a value below 1 indicates selling pressure.
The index has now risen above 1, suggesting the start of a short-term uptrend.
Note, however, that it could be a consolidation or a bullish pullback before the start of another decisive drop. So many other factors need to be considered closely in the coming weeks to determine if this is a bull trap.
You can see the BTC price here .
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