Bitcoin surpassed $19,000 after hitting a low of $17,600, as traders expect BTC to continue rising.
The Bitcoin price (BTC) started to rise again on December 13, rising above the $19,200 level after falling below $17,600 on Friday. The significant increase in buyer demand in that area indicates that BTC may have seen a short-term floor.
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When Bitcoin Revival initially fell to around USD 17,700, on-chain analysts, including Edward Morra and Nik Yaremchuk, pointed out that there were large purchase orders at Bitfinex and Coinbase.
As soon as the BTC price briefly reached USD 17,700, it began to recover quickly, recovering to USD 18,000 in just three hours.
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Conventional technical analysis suggested that Bitcoin’s logic floor would probably be set at USD 17,000. It marked the peak of a weekly candlestick in January 2018, and it’s also an important support area in the shorter time frame charts.
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Morra noted that Bitcoin could have randomly recovered to $17,600 if traders weren’t looking at heatmaps of the exchanges.
Bitfinex order book for Bitcoin.
The order books and heat maps showed the whales bidding heavily at the level of USD 17,600, which probably marked a local ground. Morra said:
“Finex and whale protection. Keep in mind that the regular charts looked very ugly and the price bounced off of nothing if you didn’t look at the heat maps.
Yaremchuk, a crypto-currency trader and on-chain analyst, shared a similar sentiment when Bitcoin reached USD 17,600. On December 11, the trader said:
“On December 11, the trader said: “$BTC reached USD 17,600 in my opinion, this is the bottom.
Bitcoin 4-Hour Trend Line Chart
Bitcoin’s rebound from USD 17,600 is excellent news because it printed a higher minimum formation on the 4-hour chart. This means that the soil of the recent correction is higher than the previous soil, a trend often seen during upward trends.
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The price of Bitcoin also began to rise after it exceeded USD 18,800, which Cointelegraph identified as a potential whale group area and a key resistance level.
Next levels to watch out for
In the short term, there are two key factors to consider. First, as Cointelegraph has consistently reported, Bitcoin sales pressure remains relatively high. Second, this would mark the second time that the historical high has been tested since November 30th.
Bitcoin’s performance is outperforming the 2016 halving that caused the all-time high of $20,000
It can be argued that there is now less short-term selling pressure since the miners and whales sold large quantities last week. In other words, this was the long-awaited correction and the upward U-turn has been confirmed.
The likelihood of new all-time highs increases even more if Bitcoin breaks through the $19,400 resistance soon and remains at low selling pressure.
Why shouldn’t a 30% drop in Bitcoin’s price come as a surprise?
A pseudonymous trader known as “Beastlorion” said that the lack of selling pressure could trigger a major rally in the near future, saying
“The price action in $BTC at the moment is something else. There’s like 0 selling pressure. It looks like the price is being pulled up at this point instead of being pushed. Just look at those volume bars. Great pump () in my opinion”.