- BTC consolidation can be a sign of market recovery.
- The price range of BTC is limited between $18,000 and $20,000.
- If BTC breaks down to the $18K level then it will further continue to plunge.
The crypto market is already experiencing a bearish market, in addition to that the industry witnessed another crashdown last week. The price value of Bitcoin sloped down to $18,500 which currently acts as the support level. Though it wasn’t expected that Bitcoin will further drop from the $20,000 level, the current market status is depriving.
As of now, $18,500 is turned out to be the strong support level, but if BTC breaks this level then it can further drop to $15,000. Considering the current resistance and support level of Bitcoin, it appears that the BTC price is consolidated. Then is this a sign for Bitcoin’s uptrend? Will the Bitcoin consolidation help the crypto market to recover? Let’s dig in to know more about the technical analysis of Bitcoin.
Will Bitcoin Uptrend After Consolidation?
Significantly, the trading chart of BTC will help in technical analysis. The first thing to consider is the previous consideration and how price action oscillated from its consolidated range. In Bitcoin’s scenario, the important price level is $30,000 which reached that level after a great fall. Following that, the price range maintained between $27,000 and $30,000 which is the consolidated zone with sporadic breakouts.
However, that did not stay long, BTC further declined to its next significant support level at $20,000. Now, let’s take a look at the current market state where Bitcoin is in a consolidation zone. This means BTC is stabilizing around $20,000, with the price range limited between $20,000 and $18,000.
Accordingly, it is estimated that BTC will decline by around $15,000 if the market value breaks $18,000. Yet, since Bitcoin has a market dominance of more than 40%, the consolidation is quite worrisome for the entire cryptocurrency market. On either extreme, users can expect a BTC upsurge in the nearish term if BTC breaks the next resistance level at $20,000 instead.