Bitcoin Price is CONSOLIDATING! Day Trading Heaven?

The cryptocurrency market saw a huge decline in prices recently. Bitcoin prices fell by more than 15% in the past 2 weeks. The overall cryptocurrency market saw a similar drop in its market cap. This is expected as Bitcoin still has a significant dominance of around 40%. Today, BTC prices are consolidating between two psychological prices. This trend attracts day traders and lures investors into day trading instead of hodling. Is Bitcoin Price really consolidating? Should you really enter a day-trading mode? In this article, we’ll analyze what happened to Bitcoin prices so far, and try to assess whether this current trend will extend.

Bitcoin Price Fell from its All-Time High

After reaching an all-time high price of around USD 69,000, BTC prices retraced back to the mid-50K area. Many fundamental factors contributed to this decline. From a technical perspective, on the other hand, it looks like Bitcoin price simply retraced back to the average uptrend. Looking at the daily chart of BTC, we can clearly see the uptrend in prices. Smart investors wouldn’t want prices to balloon without any sign of breathers.

BTC/USD 1-day chart showing the normal uptrend of BTC
Fig.1 BTC/USD 1-day chart showing the normal uptrend of BTC – TradingView

Is Bitcoin REALLY consolidating?

Looking at the 2-hours chart of BTC, we can spot a short-term consolidation. This is where day-traders can enter long-short positions depending on the upper and lower delimitations. Day traders can do the following:

  • Buy around the 55K area
  • Sell around the 60K area

The current price of Bitcoin is around USD 56,300 and around the Buy area.

BTC/USD 2-hours chart showing a short-term consolidation
Fig.2 BTC/USD 2-hours chart showing a short-term consolidation – TradingView

On the other hand, this “consolidation” did not extend for a while and is still relatively new (more precisely, since 1 week). So traders should anticipate heavy volatility as prices pick up. Adequate risk management such as setting a stop-loss zone is very important, especially as BTC prices can still adjust lower towards the 50K price as seen in figure 1.

Stay Ahead, Stay Updated
Rudy Fares

Bitcoin Price
Bitcoin Price© Cryptoticker

The post Bitcoin Price is CONSOLIDATING! Day Trading Heaven? appeared first on CryptoTicker.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

New Strategic Partner for CheersLand: Medabots

Cheerlands has made an announcement about its partnership with Medabots, which is one of the best GameFi projects across the world. So it is the new strategic partner, and both of them will be working together in terms of cross-marketing, staking, working with tournament organizations, and competitions to grow each other’s projects in various ways.

FTX Ventures to Support Development of Product Categories

The segment of technology services is going through a phase of comprehensive transformation. Many competitive players are entering into the segment, and as a result, all stakeholders, including customers and investors, are getting access to new-age services and technology products. The organization is now gearing to make the future of the ongoing web3 Revolution even

Sphynx Labs Is Looking Forward to Integrating with Chainlink

Sphynx Labs, called the decentralized exchange, is officially integrating three different decentralized services, Chainlink, the leading network of Oracle, in a decentralized manner. Sphynx is working towards the enhancement of functions in its platform by- Using Chainlink VRF to verify that its drawing games are provably fair. Working with Chainlink Keepers to provide additional stop-loss

SundaeSwap and the ISO to Go LIVE on Thursday

The long-awaited moment has arrived! The information about the launch of  SundaeSwap DEX is presented in an easy-to-understand format below. Important Dates and Points to Remember: SundaeSwap will go live as a completely operational beta decentralized exchange on 20 January Thursday. The 1st round of ISO prizes will be determined on 25 January Tuesday. To