- Bitcoin price has been in a tight consolidative range for nearly nine days.
- A sweep of the $19,511 liquidity cluster may likely trigger a recovery to $21,874.
- A daily close that breaks below then flips $19,511 support into resistance will invalidate the bullish thesis.
Bitcoin price has been in a consolidation range for the last nine days and shows no signs of breaking lower or higher. However, the general outlook for BTC is that it needs to collect liquidity before attempting a recovery rally.
While the price action of BTC is boring without a doubt, news about a leading Bitcoin enthusiast, Michael Saylor, the CEO of MicroStrategy, is not. Saylor has hit headlines after being caught in the regulatory whirlwind as the District of Columbia files a tax fraud suit against him.
While one of the major BTC proponents gets served, Poolin miners, who form part of a Bitcoin and wider cryptocurrency mining pool, are worried as the company halts withdrawals on its wallet service, citing liquidity issues.
Bitcoin price needs to show its hand soon
Bitcoin price has come extremely close to sweeping the $19,511 level, which contains the August month’s lows, double bottoms and last week’s lows. Hence, this coinciding cluster contains a lot of uncollected sell-stop liquidity resting below.
A sweep of the $19,511 level could be followed by a quick recovery above it and this would provide the initial signal required for investors to flip bullish on the recovery rally.
One of the reasons why Bitcoin price will likely attempt a recovery rally here is “mean reversion” ie., after a massive move in one direction, the asset reverses and revisits the mean of the recent move to close the efficiency gap.
With that in mind, a sweep of $19,511 could result in a retest of $20,692, which is the midpoint of the 10% crash seen between August 26 and August 28. In some cases, Bitcoin price might also revisit the range high at $21,874 to collect the buy-stop liquidity resting above the equal highs, bringing the total gain to 12%.
BTC/USDT 1-day chart
While things are looking up for Bitcoin price, a breakdown of the $19,511 support level will invalidate the bullish thesis. This development could see BTC revisit the swing lows formed on July 13 at $18,880 and or the previous month’s low at $18,752.
In a highly bearish case, Bitcoin price could revisit the $17,570 support level.
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
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
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?