Over the past few days, we have seen an increase in bitcoin price fluctuations. During this time, bitcoin fluctuated between $ 18,200 and $ 19,500.
To Report Coin Telegraph, the price of bitcoin has entered the stabilization phase two days ago and after setting a new price record. The range of bitcoin fluctuations has varied from $ 18,200 to $ 19,500 since then.
In the 1 and 4 hour timeframes, a pattern similar to the flag pattern is formed. Breaking this pattern is likely to push the price up to $ 19,400. In this area, the price trend is expected to meet resistance.
Breaking the flag pattern means that $ 19,000 has become a strong support, and if market buyers can turn both 19,400 and 19,500 into a support area, the next goal will be to record a new historic high.
According to many market analysts, the stabilization and price reduction phases to lower support levels are necessary for the uptrend and further leaps to continue.
In addition, assuming that Bitcoin is in a fully bullish market, investors see price corrections as an opportunity to buy. Looking at the daily chart, it can be seen that in any significant price reduction, buyers have made a purchase, and this can be considered as a sign that the bitcoin market is rising.
On the other hand, the pattern of lower daily peaks is still visible, while we have recently seen the breaking of the $ 19,000 support.
According to the VPVR index, if Bitcoin fails to stabilize at $ 19,200 and $ 19,000, the next support is $ 18,650. Following this support is the $ 17,800 area. The $ 17,800 area is within the 20-day moving average. The 20-day moving average has performed well since the current uptrend, which began in October. At the time, each bitcoin was trading at $ 10,600.
“Michael van de Poppe, a market analyst, said:
The analysis is very difficult in the current situation, but higher time frames indicate that the current trend has continued too much. If the price of Bitcoin does not close at around $ 19,000, it is likely that the trend will change.
Van Deepop believes that the $ 19,000 area is very important in weekly and daily timeframes. According to him, there is a possibility of changing the trend in the short term (from ascending to descending).
If market bears take control, the price may fall to the 20-day moving average at $ 17,800. On the other hand, the possibility of reaching the correction level of Fibonacci 23.6% and the price of $ 16,100 is also possible.
The VPVR index in the daily time frame shows that the price is high at $ 15,700, but as we mentioned, the price has shown good support in the 20-day moving average.
The role of large grain traders and investors in the current market is well visible. Many believe that the interest of such traders in buying at the price floor does not allow them to fall.