The Bitcoin Rally Stalls, Leading to Consolidation
In early November, the Bitcoin (BTC) price movement showed bullish signs. However, since November 9, the rally has stalled, resulting in a period of consolidation.
Long-Term Range Creates Resistance at $37,500
Crypto traders often use horizontal ranges to identify key levels of support and resistance. For Bitcoin, one significant resistance level has been at $37,500. This area has acted as both support and resistance since the end of 2020. In November, the BTC price reached this critical area.
Crypto Chase, a cryptocurrency trader, highlighted the importance of this resistance area and predicted that the price would not be able to break through it and reach $40,000.
Short-Term Deviation Leads to Price Increase
InmortalCrypto, another crypto trader, shared a short-term chart on November 14. The chart suggested that the price would temporarily drop below its previous low before moving upward to $37,000.
Since then, the BTC price has increased along an ascending support trend line. Although it hasn’t broken out from the $38,000 resistance area yet, it is currently trading within an ascending triangle pattern, which is considered bullish.
Halving Narrative Provides Accurate Prediction
RektCapital analyzed the BTC price movement before the 2020 halving and used it to predict future movement in 2023 and 2024. He suggested that any retracements during this period would likely generate significant returns after the halving event.
If a similar price movement occurs leading up to the April 2024 halving, the BTC price will likely consolidate or decrease until then before experiencing a parabolic rise in the second half of 2024.
It’s important to note that the price movement in 2023 has been more bullish compared to 2019, when the price corrected significantly.
Hot Take: Bitcoin’s Rally Pauses as Resistance Holds Strong
The recent rally in Bitcoin has hit a roadblock as it struggles to break through a key resistance level. Traders are closely watching the $37,500 area, which has acted as both support and resistance in the past. While some analysts predict a potential drop in price, others believe that a short-term deviation will lead to an eventual increase. The halving narrative also provides insights into future price movements, suggesting that any retracements now could result in significant gains after the halving event. Overall, the Bitcoin market is currently consolidating, and its next move remains uncertain.
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