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Bitcoin Consolidates, Traders Contest 18.2K to 19.5K Range

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After an impressive run to a new alltime high on Dec.1, Bitcoin BTC price appears to have entered a short consolidation phase as the price ranges between 18,200 and 19,500. The 1 and 4hour charts show the price compressing into a pennantlike structure and break out from the pattern would likely see the price move to the 19,400 level where is a bit more resistance.

A breakthrough the pennant would also suggest that the 19,000 level could now function as solid support and if bulls are able to flip the 19,400 to 19,500 zone to support then an attempt at overtaking the new alltime high is expected. As many analysts have pointed out, periods of consolidation and pullbacks to retest underlying support are critically important to sustaining the strength of an uptrend.

Furthermore, if Bitcoin is truly is in a bull market, investors will view major and minor pullbacks as purchasing opportunities. Clear evidence of this can be seen in the daily chart which shows traders buying into every significant dip since midOctober. We can also see that the pattern of daily higher lows is intact even after the most recent strong rejections at the 19,000 level.

If Bitcoin price fails to push through 19,200 or loses the 19,000 level, the volume profile visible range VPVR shows theres support at 18,650 and below this at 17,800. 17,800 is also aligned with the 20day moving average, a metric that has been respected since the uptrend first began on Oct. 7 when Bitcoin price traded for 10,600….

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