Bitcoin price analysis: potential consolidation before continued upside?
The recent surge in Bitcoin’s price has brought it back above the $52,000 mark. Bitcoin’s price has been consolidating since its latest high of roughly $52,884. Technical indicators reveal that the leading cryptocurrency asset is still in an uptrend and may be prepared for a further move higher following this sideways trading range.
However, a potential consolidation period might be on the horizon before the uptrend continues. Traders intently focus on crucial support and resistance points while executing their strategies.
The #Bitcoin chart looks great as the momentum is massive.
I'm expecting a short-term correction before a final push to $54-58K and then we're likely done with this current pre-halving run. pic.twitter.com/sq9GWn0N8M
— Michaël van de Poppe (@CryptoMichNL) February 19, 2024
Bitcoin Price and Technical Analysis
Bitcoin (BTC) traded in a tight range of $51,214 to $52,884 during the weekend, according to the 6-hour and 4-hour price charts. This consolidation, just below the local high of $52,884, follows a strong uptrend on the daily chart, where BTC gained over 8% for the week.
Bitcoin’s 10-minute chart reveals crucial support at $51,700 and resistance at $52,515. A sustained close below the support level could signal a potential correction. The TD Sequential indicator on this timeframe indicates that a bearish reversal may occur if Bitcoin cannot maintain above these levels.
On #Bitcoin 10-mins chart, the TD Sequential’s support trendline sits at $51,700 while the resistance trendline is at $52,515. A sustained close outside of this zone will determine the direction of $BTC next move. pic.twitter.com/D0awMEQTxp
— Ali (@ali_charts) February 19, 2024
Despite a 0.87% drop in the last 24 hours, Bitcoin had a 3.87% spike in the previous week, with a stunning $21.7 billion in 24-hour trading volume. This increase suggests that there is significant buying pressure from both retail and institutional investors.
The options market also reflects a bullish outlook, with call spreads being among the most popular strategies on Deribit, the leading crypto options exchange. As of now, the market sentiment remains divided between those who believe in a potential correction or consolidation period and those anticipating a continuation of the uptrend. Ultimately, Bitcoin’s price action will depend on how it responds to these key support and resistance levels in the coming days.
Largest hourly #Bitcoin outflow in 2024 from Coinbase today: 18,746 Bitcoin moved in two transactions at the same block.
However, the transactions have all the patterns that would suggest:
– The Bitcoin is going into custody (input consolidation, new addresses being created… pic.twitter.com/FvH1wBXg1X— Julio Moreno (@jjcmoreno) February 19, 2024
Consolidation or Correction?
The crypto market has been volatile recently, with Bitcoin experiencing sharp fluctuations in value. As investors weigh their options, many are considering whether a potential consolidation period or correction is on the horizon before the uptrend resumes. A consolidation period may be on the way before the uptrend resumes.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
