The Bitcoin bull flag will determine whether the bearish will push the price to $14,000 or whether the bullish will finally cross the $16,000 mark.
It seems that the price of Bitcoin (BTC) is taking a short break after reaching a new high for 2020 at $15,960 on November 5th.
The hourly and 4-hour charts show the price increasingly compressed within a bull flag, and the $15,500 level held up as support for most of the trading day. Bitcoin will need to exceed $15,750 to test the $16,000 again.
Several hours ago, BTC formed a dragonfly doji candle while the price was testing the lower support of the bull flag at $15,166, and its closing was followed by a breakout concluded between $15,500 and $15,600, an area with a high volume VPVR node.
Clearly, the bullish and bearish are currently engaged in an arm wrestling match, and turning the $15,600 level into support with a higher closing on the 4-hour chart will increase the chances of a third attempt to cross the $16,000 finish line.
In addition, CSR continues to rise above 70, a bullish signal, but daily buying volume has declined slightly after some traders have cashed in profits on BTC’s $15,900 increase.
In contrast, a fall below support at 15,100 opens the door to a touch of the 20-day moving average at $14,680. The rapid, almost vertical breakout between 4 and 5 November did not establish any ’new media‘. As indicated by the volumetric profile, a clear range shows a gap between $13,900 and $15,500.
If the price falls below $15,100 and buyers do not consider the correction an opportunity to get Bitcoin Revolution at discounted prices, a new level test between $14,000 and $13,800 becomes possible.
A 9% drop, equivalent to $1,400, is undoubtedly disturbing, but lower support retests are perfectly natural and healthy after particularly strong movements like the one observed during the week.
At last the altcoins find their own way
While the price of Bitcoin seeks its direction, the altcoins have recovered a small part of the land lost in the last two months. Ether (ETH) is the most significant leader of the last few days, with a rebound from support to over $450 resistance.
Yearn Finance (YFI) marked a strong movement that ended at $14,800: an increase of 40%. UNI, Uniswap’s token, also recorded a remarkable growth of 16%: it is currently at $2.80.
According to CoinMarketCap, the total cryptocurrency market cap is $448 billion, and Bitcoin’s dominance is 64.7%.