Bitcoin Price May Suffer 'Significant Breakdown' To $15,500 If This Happens: Report

KEY POINTS

Bitcoin struggles to maintain the $19,000 level
The number of active addresses has decreased
Traders are observing the volume in the spot market

Bitcoin once again reached the $19,000 level this weekend, but the price rally appears to be losing its steam. Analysts say failing to break the resistance at $19,500 could cost the benchmark cryptocurrency a drop to as much as $15,500 in the short term.

Bitcoin closed Sunday at $19,375, around $100 up from the previous day after breaking down to $18,658 Friday. The benchmark cryptocurrency is up 15% in the last 30 days and up 169% since the year began.

While the main resistance is at $19,500, the failure to sustain the $19,200 level is concerning, said an analysis by news outlet FX Street. It said the bull traders are trying to keep Bitcoin above $19,000 but a freefall might happen if the benchmark cryptocurrency breaks the 50, 100 and 200 simple moving averages (SMA) in the 4-hour chart. This break, FX Street said, is eyeing $15,500 as the likely target.

Traders should now be looking at key metrics and check if they point to a bearish direction. According to Cointelegraph, one key thing to check is the volume in the spot market. If important resistance levels are breached on low volume, it could inspire a lack of confidence, causing the price to soon go down again. "Therefore, significant price changes should be accompanied by robust trading volume," Cointelegraph reported.

FX Street reported that the decline in the number of new addresses is giving credit to the bearish outlook. Data from IntoTheBlock suggests a sharp 23.4% decline in new addresses to nearly 472,000 after hitting 616,000 on Dec. 1.

An increasing number of active addresses signifies growth for the Bitcoin network. If it falls, the decline in Bitcoin price would be validated, FX Street added.

Bitcoin is on the cusp of history as it stayed above $19,000 in six of the last 13 days. Bitcoin reached a new all-time high price on Dec. 1 without much fanfare. Traders and analysts unanimously see $20,000 as the price to break if Bitcoin is to reach a new all-time high.