Bitcoin Consolidation! Analysis Of November 19, 2024

After reaching a remarkable historic level beyond $93,400, Bitcoin is entering a consolidation phase. Let’s now examine the potential developments for BTC.

Bitcoin (BTC) Price Situation

After two consecutive weeks of rising, following the presidential elections, Bitcoin reached a new ATH at $93,433. After a slight correction, it is entering a consolidation phase in the form of an ascending triangle. This is situated just below the third resistance of the pivot points. In the short term, we observe that the cryptocurrency is struggling to break through the resistance of $91,800. However, its price records increasingly higher peaks, indicating continued demand. Notably, its lowest point is around $85,000. The entirety of this figure creates a notable volume zone, forming a key area to preserve.

At the time of writing this text, the Bitcoin price has just tested $91,500. Despite this pause, the cryptocurrency remains in an upward trend in the short, medium, and long term. However, it should be noted that the crypto has undergone a more significant movement. This reflects a strong bullish momentum for Bitcoin, observable in both its oscillators and its price. Although this momentum is positive, it is important to remind that such a strong movement could be followed by a significant correction.

The current technical analysis has been conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Lives, educational content, and mutual assistance around financial markets in a professional and warm atmosphere.

Focus on Derivatives (BTCUSDT)

The open interest of BTC/USDT perpetual contracts has stabilized, mirroring its underlying asset. This indicates a pause in speculative interest. On the CVD side, there is a downward orientation, reflecting a majority of selling positions in the market. Nevertheless, the funding rates show that perpetual contracts remain predominantly bought, being positive. Regarding liquidations, they are not truly significant. This may reflect cautious position management by traders or a lack of sufficient volatility to trigger massive liquidations.

The liquidation heatmap for BTC/USDT perpetual contracts highlights significant value zones on both sides of its current price. Above it, one can note a notable area around $93,000. Below, a more subtle zone lies just below $90,000. More visible and extensive, the area between $95,000 and $96,000 is particularly striking. Even lower, a zone around $80,000 is notable, although the most significant one is found around $75,000. If the price approaches these levels, it could trigger a large number of orders, thus increasing the volatility risk for the cryptocurrency. These zones therefore constitute a crucial point of interest for investors.

Forecasts for Bitcoin (BTC) Price

• If the Bitcoin price manages to stay above $85,000, a breakout of the resistance at $91,800 could occur. In this case, a continuation of the upward movement would allow reaching the threshold of $93,400, paving the way for a new ATH. The latter could be around the first pivot resistance, identified at $95,437, corresponding to a progression of about 4.5%

It is important to note that reaching a historic high makes it harder to identify resistance levels.

• If Bitcoin fails to maintain a level above $85,000, it could find support around $81,600. A prolonged decline could then lead to support around $78,650. Finally, in case of a more marked correction, the zone located between $77,000 and $76,000 constitutes a key support, with an impact that would imply a drop of about 17%.

Conclusion

Bitcoin shows sustained bullish momentum, marked by constant progression and rising peaks. Although a consolidation is underway, reflecting a key area to preserve, the overall momentum remains positive in the short, medium, and long term. Thus, it will be essential to closely monitor the price reaction at key levels to validate or adjust current forecasts. Finally, let’s remind that these analyses are based solely on technical criteria, and the price of cryptocurrencies can evolve rapidly based on other more fundamental factors.