Bitcoin draws nigh to a massive breakout as consolidation prevails

Grayscale-Bitcoin-Trust-GBTC

  • Bitcoin’s reclaimed the position above $19,000 over the weekend but failed to disperse the seller congestion at $19,500.
  • BTC is nearing a breakout as the Bollinger Bands’ constriction tightens; upside target at $20,000.

Bitcoin has recovered after exploring the price levels slightly under $19,000. The flagship cryptocurrency hit a barrier at $19,500, hence the ongoing retreat. At the time of writing, BTC/USD is teetering at $19,290.

The Bollinger Bands shows that Bitcoin is in the middle of a consolidation period. Bitcoin’s immediate upside has been limited by the upper boundary of the BB. However, to sustain an uptrend and perhaps ensure that the impending breakout is on the upside, bulls must ensure that the middle boundary is guarded at all costs.

For now, the least resistance path is on the downside as emphasized by the Relative Strength Index. The indicator has resumed the downtrend, abandoning the recovery mission to the overbought area. Selling orders are bound to increase as long as the RSI dives towards the midline and probably the oversold region.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Meanwhile, Bitcoin has been accorded immense support, especially at the 50 Simple Moving Average (SMA) on the 4-hour chart. Trading above this moving average is a bullish market and suggests that BTC is in the bulls’ hands despite the consolidation.

On the brighter side, as the Bollinger Bands squeeze, Bitcoin draws closer to a breakout that might end up in a massive price movement towards the coveted $20,000. Some delay should be expected at $19,500 (stubborn resistance). However, trading above $20,000 will see Bitcoin enter another price discovery mode.

Bitcoin intraday levels

Spot rate: $19,290

Relative change: -124

Percentage change: -0.6

Trend: Short term bearish

Volatility: Low

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