Bitcoin (BTC) Update: preparing for $20,000 test?

The Bitcoin (BTC) rate is currently fluctuating at $19,000. We look at the charts and discuss the possible scenarios, read the update here!

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Bitcoin Update
With a price at $19,000, Bitcoin’s price is still holding up strongly. The uptrend on the key timeframes is still in place despite a sharp dip at the end of last month. And shows that we are waiting for another push up and perhaps finally through the $20,000.

The fact that we currently see $20,000 as very strong resistance has to do with the all time high that is around that level. An important psychological point through which the price will have to break through in order to reach new heights.

How long it will be able to do so depends entirely on how Bitcoin’s price will behave in the coming period.

A new sharp dip may prevent this from happening for the time being. But consolidation or a new test can quickly provide a new push up.
Bitcoin 4-hour chart
If we take Bitcoin’s 4-hour chart, we soon see that the level around $20,000 gives a lot of resistance. And it also quickly pushes the price down.

But despite this considerable resistance, the price remains firm. As a result, we continue to see a price of $19,000, close to the current resistance.
Bitcoin 4-hour chart 6 December 2020
On this timeframe of 4 hours we do see some bearish signals at the moment. Among them a lower forming high. Which could mean that the price could fall further in the coming days.

However, below this we see higher forming lows, which is just another bullish signal. And combined, the price might form a triangle.

If we do indeed see a triangle, the chance of a breakthrough up is still relevant and even the bias for the current movement of Bitcoin’s price.

A sign that we can expect more action in the short term. Where we already find strong support at $18,500, but between $19,750 and $20,000 very strong resistance. A relatively small range with important levels.

Bitcoin hour chart
Zooming in a bit further and looking at Bitcoin’s hour chart, we see that the course is following the uptrend closely. With a price that continues to move above 200 EMA. The indicator which indicates a somewhat longer term trend.

But the price is not far off and the 200 EEA also serves as a support level at the moment. This is breaking and we can indeed quickly see the $18,500 support.

The result is a bearish flip on a lower timeframe. Which of course does not mean that we will also be bearish in the long term.
Bitcoin hour chart 6 December 2020
We often see flirting with the trend line and can provide a lot of support. It keeps pushing the price up to maintain the uptrend and to break strong resistances.

So it looks like we are at an important point. With a potential test of $18,500 or perhaps a test and breakthrough of $20,000. If we break up, it is difficult to say where we are going to stop, as we will end up in a completely unknown region.

A drop by $18,500 can quickly result in low regions within $16,000. Although a quick recovery back in the current region will be plausible.