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The price of bitcoin (BTC) appears to be taking a short break after hitting a new 2020 high of $ 15,960 on November 5th.
The 1 and 4 hour time frame shows the price squeeze within a flag and for most of the trading day, the $ 15,500 level held as support. $ 15,750 is the level Bitcoin needs to break through to pursue another attempt at $ 16,000.
In the past hour, a dragonfly-shaped doji candle has formed as the price dipped to the bottom to test the bull’s flag lower support at $ 15,166, and as the formation approaches its terminal traders will look for a breakout. which will push through the $ 15,500 to $ 15,600 tier where a high volume VPVR node is hiding.
Clearly, there is a little struggle between bulls and bears, and flipping the $ 15,600 level to support with a 4-hour close will increase the chance of BTC making a third run to $ 16,000.
The RSI also continues to rise above 70, a bullish sign, but the daily buying volume has shrunk slightly after some traders secured profits while BTC climbed to $ 15,900.
Alternatively, a drop below the flag support at $ 15,100 opens the door for a 20-MA touch to $ 14,680. The rapid near-vertical breakout that occurred from November 4th to 5th occurred without establishing any “new support” and, as the volume profile, the visible range shows that there is a $ 13,900 to $ 15,500 gap.
In the event that the price drops below $ 15,100 and buyers don’t perceive it as a falling buying opportunity, there is a possibility of a retest of the $ 14,000 to $ 13,800 level as support.
While a 9%, $ 1,400 drop isn’t nervous, tests of lower support are perfectly natural and healthy after strong rallies like the one seen this week.
Altcoins finally find their way
As Bitcoin’s price seeks direction, altcoins have regained an ounce of the vast territory lost over the past couple of months. Ether (ETH) is the most important leader in recent days as the altcoin has risen to $ 447 and is currently attempting to break through the overhead resistance at $ 450.
Yearn Finance (YFI) also made a strong move as it rallied over 30% to $ 11,100. Uniswap’s UNI token also had a 15.5% rise and is currently trading at $ 2.53.
According to CoinMarketCap, the overall market capitalization of cryptocurrencies is now $ 444.6 billion, and the dominance rate of Bitcoin is 64.7%.
