The crypto market witnessed yet another crash last week. Bitcoin prices were expected to hold the $20,000 price mark, but failed to do so as prices fell and reached a low of $18,500. Today, this low price turned to become a strong support for the medium-term. Will Bitcoin go up? Is the Bitcoin consolidation a good thing for crypto prices? In this Bitcoin price prediction article, we analyze Bitcoin from a technical standpoint.
Is the Bitcoin Consolidation a Good Thing?
BTC prices are currently consolidating around the important price of $20,000. In order to assess whether this price action is a good thing, we need to go back to the charts and see previous consolidations and assess what happened. In the case of Bitcoin, when prices sank to the important price of $30,000, we saw a brief consolidation right below this price area. This price action was delimited between $27,500 and $30,000 with occasional breakouts. However, BTC prices broke the lower support price and dropped further to reach the next important support of $20,000.
This previous consolidation shows that a break in the lower support as part of an extended downtrend confirmed the crash towards $20,000. This is quite helpful as today’s price action is very similar. Let’s see what’s happening today with Bitcoin price.
Will Bitcoin go UP after the current Consolidation?
Bitcoin is currently consolidating around $20,000. This consolidation is delimited between $18,500 and $20,000. Prices also managed to breakout lower and higher. Taking this information into account, we can sort of predict certain events based on past price actions.
For the current case of Bitcoin, if prices break the $18,500 price mark as part of a strong bearish trend, we can expect BTC prices to fall lower and reach as a first step the $15,000 price. That’s why the current consolidation is a bit risky, especially for the entire crypto market as Bitcoin still has a market dominance of more than 40%.
On the other hand, if Bitcoin prices manage to break the upper resistance of $20,000 and stay higher, we might anticipate higher prices in the medium term. Currently, the fundamentals in the crypto market are a bit bad, that’s why the long-awaited uptrend has been postponed.
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Source: https://cryptoticker.io/en/bitcoin-price-is-consolidating-will-bitcoin-go-up/