Bitcoin is “Refining” This Bullish Range; Could Soon Post a Massive Breakout
- Bitcoin is currently in the process of consolidating as bulls and bears battle for control of its near-term outlook
- Where the cryptocurrency trends in the mid-term will likely depend on whether or not bulls can once again push it above $19,000, as this has been a pivotal level for BTC
- A sustained bout of trading below here could open the gates for serious losses, but many factors are all working heavily in the cryptocurrency’s favor.
- One trader believes that BTC’s consolidation channel is about to run out of room, which could mean that a massive push higher is imminent
- For this to come to fruition, the crypto must continue its pattern of setting higher-lows
Bitcoin has been caught within an intense bout of sideways trading over the past couple of weeks.
This comes as the upper-$19,000 region’s resistance remains quite intense, while the buying pressure in the mid-$18,000 region continues holding strong.
Its consolidation phase has been narrowing greatly as of late, which is a sign that may indicate a massive movement is imminent in the near-term.
One trader believes that a massive movement is imminent in the near-term, as the cryptocurrency’s channel is rapidly narrowing.
Bitcoin Struggles to Hold Above $19,000 as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down just under 2% at its current price of $18,900.
Overnight, the cryptocurrency dipped as low as $18,600 before it found some massive support that helped push it higher.
The fact that there is support here is quite bullish and may indicate that upside is imminent in the near-term.
However, the resistance at $19,000 is quite strong, and flipping this level into support has proven to be a challenging task.
BTC’s Consolidation Channel is “Running Out of Room”
One trader explained in a recent tweet that Bitcoin’s consolidation channel is running out of room, which could mean that some massive volatility is right around the corner.
He notes that BTC will remain in this channel as long as it continues to see lower highs and higher lows. This trend can only last for so long.
“BTC continuing to refine this consolidation range… lower highs, higher lows, eventually we run out of room.”
Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.
Which direction Bitcoin breaks once this consolidation phase comes to an end will likely set the tone for its future mid-term trend.
Featured image from Unsplash. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow