- Bitcoin price shows a consolidation above the $16,450 support level as bulls fight for a further ascent.
- Three scenarios can play out for BTC, all of which forecast a move to $17,600, followed by a retest of $19,000.
- A flip of the $15,462 support level into a resistance barrier will invalidate this bullish thesis for the big crypto.
Bitcoin price reveals a tight consolidation above a stable support level, indicating that a volatile move is around the corner. Traders need to pay close attention to liquidity levels to grasp the three outlooks explained below.
Bitcoin price reveals its intentions
Bitcoin price created a bottom at $15,462 on November 9 after a steep 25% crash. Since then, BTC has attempted to recover and climb higher but failed to sustain a flip of the $17,593 hurdle or the last crash’s bottom formed on June 19.
The first scenario and an easy setup involve opening a long position at the retest of the immediate support level at $16,681. The targets include Monday’s high at $17,188, followed by the inefficiency termed Fair Value Gap (FVG) at $17,251. Although invalidation of this setup will occur on the breakdown of the $16,681 support level, investors can place their stop-losses below $16,521, bringing the total risk-to-reward ratio for this trade at 2.43R.
BTCUSD 1-hour chart
The second Bitcoin price setup considers the liquidity resting below the November 9 swing low and the November 10 swing high. Traders need to hunt for a bullish outlook which is possible after the market makers trigger a selloff that sweeps the November 9 swing low.
A quick recovery above $15,462 after this liquidity run would be an ideal place to open a long position for BTC in scenario number two.
The ultimate goal for this Bitcoin price setup is a retest of 2022’s highest traded volume level at $19,011. There are smaller take-profit levels on the way to the said level, where traders could reduce their position sizes. These levels include the $16,395 and $17,600 hurdles.
In total, this trade setup would provide a humungous 5.13R with a 22% upside.
If the momentum builds up under these bullish conditions, Bitcoin price could easily extend higher and tag the $20,000 psychological level.
BTCUSD 1-hour chart
The third scenario would involve Bitcoin price holding above the $17,935 hurdle. This development will allow traders to take advantage of the bullishness in the markets and open a long position at the said level.
The take profit for this Bitcoin price setup would be the $19,011 level, as discussed above, and the stop-loss can be placed below $17,234. This trade would provide a 1.53R and a 6% upside for BTC.
BTCUSD 1-hour chart
While all of these setups are based on sound analyses, Bitcoin price needs to stay above certain thresholds. One such level is the November 9 swing low at $15,462. A breakdown of this level and a flip into a resistance level on a daily time frame would invalidate all the bullish setups detailed above.
In such a case, Bitcoin price could slide lower and retest the $13,575 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
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin 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?
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?