KEY POINTS

  • Bitcoin breached past $19,000 after testing support at $17,600
  • The volume appears to be weak in the new upsurge
  • A upsurge is possible only if there is strong volume

After a massive sell-off last week, analysts are expecting a bullish run for Bitcoin in the coming days.

Bitcoin closed at $19,166 Sunday after briefly touching $17,600 two days before. Many have pointed that this drop was because of whales, or holders of large amounts of Bitcoin, who dumped their Bitcoins on exchanges. Many retail traders also did not miss the opportunity to sell near Bitcoin's previous all-time high level.

On-chain metrics show that the logical Bitcoin bottom was actually at $17,000, where a number of large orders were waiting to be fulfilled, Cointelegraph said. Still, large cryptocurrency exchanges like Bitfinex also have large orders at $17,600

Now that the sell-pressure has subsided, analysts suggest the possibility of Bitcoin reaching $19,400 is around the corner, and breaching the level could put Bitcoin at a new all-time high. 

For the new price rally to get sustained, there must be strong volume. The bounce to $19,000, unfortunately, was supported by low volume, so the possibility of breaching $19,400 appears weak.

The 4-hour chart gives a clear view of where the price is in the short term. There have been three "impulse surges" since Dec. 11 on declining volume. After reaching $17,600, the price quickly bounced to make a quick takeover of $18,000. The price crawled slowly to make another impulse upward, from $18,400 to $18,800. This was immediately followed by a move from $18,800 to $19,250 after eight hours. 

The volume has declined after every move and it appears weak to sustain the $19,250 level. For the rally to continue, $19,000 resistance must become a support level. A fakeout is likely if $19,000 fails to get sustained. Cointelegraph warned of a potential retest of $16,000 and $14,000 if the support at $18,000 is broken.

Gold-colored Bitcoin coin on ground Gold-colored Bitcoin coin on ground Photo: André François McKenzie on Unsplash