The crypto market experienced another crash last week. Bitcoin prices were expected to hold the $20,000 mark, but they did not as prices fell and hit a low of $18,500. Today, this low price has turned into strong mid-term support. Will Bitcoin go up? Is Bitcoin Consolidation Good For Crypto Prices? In this Bitcoin price prediction article, we analyze Bitcoin from a technical perspective.
Is Bitcoin consolidation a good thing?
BTC prices are currently consolidating around the important price of $20,000. In order to assess whether this price action is a good thing, we need to go back to the charts and see previous consolidations and assess what happened. In the case of Bitcoin, when prices fell to the all-important $30,000, we saw a brief consolidation just below that price zone. This price action was bounded between $27,500 and $30,000 with occasional breakouts. However, BTC prices broke the lower support price and fell further to reach the next major support at $20,000.
This previous consolidation shows that a break of lower support in an extended downtrend confirmed the crash towards $20,000. This is very useful as today’s price action is very similar. Let’s see what is happening today with the price of Bitcoin.
Will Bitcoin rise after the current consolidation?
Bitcoin is currently consolidating around $20,000. This consolidation is delimited between $18,500 and $20,000. Prices also managed to break higher and higher. By taking this information into account, we can somehow predict certain events based on past price actions.
For the current case of Bitcoin, if prices break above $18,500 in a strong downtrend, we can expect BTC prices to decline and initially reach the price of 15,000 $. This is why the current consolidation is a bit risky, especially for the entire crypto market, as Bitcoin still holds a market dominance of over 40%.
On the other hand, if Bitcoin prices manage to break the upper resistance of $20,000 and stay higher, we could anticipate higher prices in the medium term. Currently, the fundamentals of the crypto market are a little bad, which is why the long-awaited uptrend has been postponed.
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