KEY POINTS
- Bitcoin chipped past $ 19,000 after testing support at $ 17,600
- The volume seems to be weak in the new increment
- An increase is only possible if there is a strong volume
After huge sales last week, analysts expect a bullish run for Bitcoin in the coming days.
Bitcoin closed at $ 19,166 on Sunday after briefly touching $ 17,600 two days before. Many have pointed out that this fall was due to whales, or holders of large quantities of Bitcoin, who dropped their Bitcoins on exchanges. Also, many retail traders never missed the opportunity to sell near the previous high level of Bitcoin.
Metrics on the chain show that Bitcoin’s logical bottom was actually $ 17,000, where several large orders were waiting to be fulfilled, Cointelegraph said. Still, large cryptocurrency exchanges like Bitfinex have large orders at $ 17,600.
Now that sales pressure has subsided, analysts suggest that the possibility of Bitcoin reaching $ 19,400 is just around the corner, and breaking the level could put Bitcoin at its new level ever.
For the new price rally to take place, there must be a strong volume. Unfortunately, the bounce to $ 19,000 was supported by low volume, so the possibility of a $ 19,400 cut appears weak.
The 4 hour chart gives a clear view of where the price is in the short term. There have been three “impulsive surges” since Dec. 11 on the declining number. After reaching $ 17,600, the price quickly bounced to occupy $ 18,000. The price slowly climbed to make another upward spiral, from $ 18,400 to $ 18,800. This was immediately followed by a move of $ 18,800 to $ 19,250 after eight hours.
Volume has declined after every move and seems weak to maintain the $ 19,250 level. For the rally to continue, a $ 19,000 resistance must become the support level. False is likely if $ 19,000 fails to be sustained. Cointelegraph warning of a potential $ 16,000 and $ 14,000 repatriation if the support at $ 18,000 is curtailed.
