December 1, 2020

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Bullish Bitcoin price prediction looks shaky as BTC/USD dwindles near $19K

4 min read

  • Optimistic Bitcoin price prediction under threat as BTC price rejected from $19,000
  • ‘whale cluster’ support area near $17,200 to provide immediate support
  • Overbought technical indicators are signaling a reverse for BTC/USD
  • BTC/USD still trading in a narrow range between $18,000 to $18,600
Bullish Bitcoin price prediction looks shaky as BTC/USD dwindles near $19K 1
Cryptocurrency heat map by Coin360

Bitcoin price consolidating near $18,500 amid thin weekend liquidity

Bitcoin price is spending the weekend leisurely near the $18,500 support region. However, the relief can be short-lived as overbought technical indicators are piling up fast. The pair has been making lower lows on the hourly charts. During the thin weekend, any volatile move can force the pair downwards to test lower supports near $17,900 and then towards the $17,200 level.

The BTC whales have built huge ‘Buy Walls’ near $17,200, which will provide strong support to the pair in case of an extended bearish rally. The minor dip towards $18,000 was bought up aggressively by the bulls.

The volume has been steady, reflecting that the underlying buying is still there. If BTC/USD closes above $18,500, the weekly green candle will further bolster bullish Bitcoin price prediction.  

Bitcoin price movement in the last 24 hours – Green candle marks weekly close

Bitcoin price is trading in a narrow range between $17,700 to $18,800. The price is moving within the Bollinger Bands in a zig-zag pattern. Yesterday’s correction to $17,600 was well handled by the bulls, who sprung into action to bring the pair back above $18,500 to maintain bullish Bitcoin price prediction.

The RSI is now under 70 level, which is still an elevated reading and shows the pair’s bullish bias. The first support on the hourly timeframe lies at $18,250. BTC price is still trading near the upper edge of the ascending price channel. The wedge pattern is emerging in the small-scale hourly timeframes meaning a reversal or a minor correction may be on the way.

BTC/USD 4-hour chart – Holding on to higher support levels

Bullish Bitcoin price prediction looks shaky as BTC/USD dwindles near $19K 2
Bitcoin price chart by TradingView

The rising institutional demand has supported the pair well over the past few weeks. The consistent liquidity and volume mean that the BTC/USD pair is now well supported by $18,500 support on the hourly charts. Despite minor corrections, the pair has bounced back to remain near higher support levels.

For the BTC/USD to rally to $19,000, the pair must remain stagnant near the higher support mark at $18,500. It will help cool down the overheated technical indicators and push the pair higher as the next week starts. The volume support from OTC markets will help the pair sustain the bullish Bitcoin price prediction. The RSI and MACD are now below the overbought readings on the hourly charts. The lower support at $17,200 is strong, and the pair will likely bounce from this level quickly.

There’s no stopping this institution-led rally

The euphoric rally of 2017 was due to the ICO boom. Today, the BTC/USD rally is more of a matured uptrend supported by strong underlying fundamentals. The crypto asset now commands much more mainstream credibility. The rising institutional buying of BTC shows that the pair is more composed and stable throughout the current uptrend.

The pair have repeatedly taken down major resistance levels on the back of healthy technical and fundamental factors. The spot volume spike and rise in the futures market is also courtesy of the institutional demand. Traditional financial institutions and companies are now integrating BTC into their investor portfolios.

The heavy involvement of large investors and institutions in the current BTC uptrend is further raising hopes of hitting fresh new highs. Unlike retail investors, institutions undertake in-depth research before allocating an asset in their portfolio. Consequently, the technical research and statistics studied by a professional investor add more value to BTC’s credibility as an asset. These institutions have a long-term strategy in their mind, which further strengthens BTC’s appeal in the asset market. No wonder Bitcoin was able to quickly bounce out of every minor or major dip in the past three months.

Bitcoin price prediction conclusion – Unlike 2017, this rally will go on

For the first time, the BTC/USD rally is driven by fundamentals instead of euphoria. It is evident from the charts that the current rally is mature and stable. The parabolic rise also features valleys and troughs. Unlike the 2017 BTC mania, the present uptrend is persistent in terms of volume and liquidity. Financial institutional, hedge funds, large investors, and BTC whales have all come together to handle the price dips.

The whale clusters near the $17,000 region are something to watch out for. If the pair slides deeper into a correction, the price can touch $17,200 support where large buy orders will await BTC. Analysts have observed that large whale clusters are standing near $17,000 to restart accumulation after a correction period. Any short-term pullback will also help tone down overheated technical indicators. The bullish Bitcoin price prediction is still in play on the daily charts and the pair set to close the week above the $18,000 level.

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