Bitcoin Consolidation! Analysis for November 19, 2024
After reaching a remarkable peak of over $93,400, Bitcoin is now going through a period of consolidation. Let’s examine what lies ahead for BTC.
Following two weeks of growth after the presidential elections, Bitcoin hit a new all-time high at $93,433. After a brief drop, it has entered a consolidation phase, forming an ascending triangle just below the third resistance level.
In the short term, Bitcoin is struggling to surpass the resistance at $91,800. However, it continues to set higher highs, indicating a strong demand. Its lowest point is around $85,000. This pattern establishes a significant volume zone, marking an essential area to watch.
Currently, Bitcoin has tested the $91,500 mark. While it has paused, the cryptocurrency remains on an upward trend in the short, medium, and long term. However, it's important to note that Bitcoin has experienced substantial movement. This suggests strong bullish momentum, visible in both its oscillators and price action. While this trend is encouraging, a significant correction could follow such a strong surge.
This technical analysis is a collaboration with Elie FT, who is an active investor and trader in the crypto market. Elie is now a trainer at Family Trading, a community of thousands of independent traders since 2017, providing live sessions, educational materials, and support in a friendly environment.
BTC/USDT perpetual open interest has stabilized alongside its underlying asset. This indicates a pause in speculative trading. On the CVD front, a downward trend shows that short positions dominate the market. Yet, funding rates suggest that perpetual contracts are mostly bought, remaining positive. Liquidations are not significant, which may indicate cautious management by traders or insufficient volatility to cause large-scale liquidations.
The liquidation heatmap for the BTC/USDT perpetual contract reveals important price zones around its current value. There’s a notable area just above $93,000. Below that, a subtler zone is found just under $90,000. An extensive area between $95,000 and $96,000 stands out. Additionally, there is a significant zone around $80,000, but the most critical level is around $75,000. If the price nears these points, it could trigger many orders, increasing the risk of volatility for Bitcoin, marking these areas as critical for investors.
If Bitcoin maintains its position above $85,000, it could break through the resistance at $91,800. This move would likely continue the upward trend, allowing it to reach the $93,400 level, possibly setting up a new all-time high. This high could be around the first resistance level at $95,437, representing a rise of about 4.5%.
Identifying resistance levels becomes harder after reaching a new all-time high.
On the other hand, if Bitcoin cannot stay above $85,000, it might find support near $81,600. A longer decline could lead to support at approximately $78,650. In the event of a more significant drop, the key support range between $77,000 and $76,000 could result in about a 17% decline.
Conclusion
Bitcoin is showing ongoing bullish momentum, marked by consistent upward movement.