After an impressive run to a new all-time loftier on Dec.one, Bitcoin (BTC) toll appears to have entered a short consolidation phase equally the cost ranges between $eighteen,200 and $19,500.

The one and 4-hour charts bear witness the price compressing into a pennant-like construction and intermission out from the pattern would likely see the price motility to the $19,400 level where is a flake more resistance.

BTC/USDT 4-60 minutes chart. Source: TradingView

A breakthrough the pennant would likewise suggest that the $19,000 level could now function as solid support and if bulls are able to flip the $19,400 to $nineteen,500 zone to back up then an attempt at overtaking the new all-fourth dimension loftier is expected.

Equally 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 balderdash market, investors volition view major and minor pullbacks as purchasing opportunities. Articulate evidence of this tin can be seen in the daily nautical chart which shows traders buying into every significant dip since mid-October.

BTC/USDT daily nautical chart. Source: TradingView

We tin can too come across that the design of daily college lows is intact even after the most recent strong rejections at the $19,000 level.

If Bitcoin price fails to push through $xix,200 or loses the $xix,000 level, the book profile visible range (VPVR) shows there'southward support at $18,650 and beneath this at $17,800. $17,800 is also aligned with the xx-twenty-four hour period moving average, a metric that has been respected since the uptrend first began on October. 7 when Bitcoin toll traded for $ten,600.

According to Cointelegraph contributor Micheal van de Poppe:

"It's quite difficult to make whatsoever assay at this point but the college timeframes indicate that there is some overextension at this signal. If Bitcoin does non break or close to a higher place $19K, I think we are going to opposite."

Van de Poppe also suggested that one the weekly timeframe the crucial area to hold is $xix,000 and on the daily timeframe. He cautioned that a potential bearish divergence could be hinting that a reversal in the shorter term.

What if bears take control?

In the event that Bitcoin toll takes a bearish turn by dropping from the electric current range and losing the $17,800 back up at the xx-MA, a retest of the 23.6% Fibonacci retracement at $16,100 is possible.

The VPVR on the daily timeframe as well shows interest around $15,700, merely every bit mentioned earlier, the price has respected the twenty-MA since early October.

It'south also articulate that retail and institutional investors take demonstrated a strong interest in buying significant dips and then information technology seems unlikely that this trend will cease even if BTC loses the current range.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. Yous should bear your own research when making a decision.