- Going by previous occurrences, Bitcoin price may be in for another period of parabolic advance if the $19,500 level is surpassed.
- Failure to front-run the newly created CME gap on the Futures market may spell trouble for Bitcoin in the short term.
Bitcoin appears to be replicating momentum akin to what it has done a couple of times from previous months. Based on these price actions, the most likely outcome may take the flagship cryptocurrency to new highs if history repeats itself.
Bitcoin's upswing lurks after fake out
The market has been going sideways for a while now as most altcoins are yet to experience any major volatility. Even Bitcoin is yet to break the hurdle of its previous highs as it trades at $18,955 at the time of writing.
This year's halving led to the beginning of a bullish wave that pushed Bitcoin's price to way past March's correction to a new all-time high of $19,915.
BTC/USD daily chart
Interestingly enough, ever since the uptrend began in mid-March, Bitcoin price action has been characterized by a series of higher lows with bullish divergences against the RSI along the way, followed by fake-outs. Such market behavior can also be spotted in more recent times.
The hidden bullish divergence recorded between November 26 and November 30 resulted in the construction of higher lows. Meanwhile, the tapering volume seen on the recent moves increases the odds of repetition.
The development of a rising wedge pattern may lead to a breach of the $19,500 target. Then, Bitcoin price could consolidate for a while before the next major movement. Holding above this hurdle for a prolonged period could ease the uncertainty in the cryptocurrency that results in another leg up to $21,200.
The bullish outlook may be invalidated by a break of the wedge's lower boundary. In this scenario, the next support level to look out for will be the $16,000 zone.
Bitcoin CME Futures
Another factor that could reinforce Bitcoin's bearish thesis in the short term is the setup of a new $1,000 CME gap between $18,100 and $19,100. If buying pressure does not increase, Bitcoin will make a move to refill the gap, as it has happened in the past. The drawback could further extend into filling another outstanding opening on the CME chart created back in November.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?