Bitcoin’s bullish flag will determine whether the bearish will sink the price to USD 14,000 or whether the bullish will eventually reach USD 16,000.
The price of Bitcoin (BTC) appears to be taking a small break after reaching a new annual high of USD 15,960 on November 5.
The 1 hour and 4 hour time frame shows the price compression within a flag and for most of the trading day, the USD 15,500 level has remained as support. The USD 15.750 level is the hurdle that Bitcoin needs to overcome in order to try and reach the USD 16.000 level again.
In the last hour, a dragonfly doji candle formed when the price dropped to test the lower support of the rising flag at USD 15,166, and as the formation approaches, its last traders will be looking for a breakout that will push through the USD 15,500 to reach USD 15,600 where a high volume VPVR node lurks.
Clearly, a small fight is occurring between the bulls and the bears, and turning the USD 15,600 level into support with a 4 hour close will increase the possibility of BTC making a third run to the USD 16,000 mark.
The RSI also continues to rise above 70, this in a bullish signal, but daily buying volume has declined somewhat after some traders decided to withdraw their gains when the BTC price shot up to USD 15,900.
Alternatively, a fall below the flag support at USD 15,100 opens the door to reach the 20 day moving average, which currently stands at USD 14,680. The rapid and almost vertical breakout that occurred between November 4-5 occurred without establishing any „new support“ and like the volume profile, the visible range shows that there is a gap extending from USD 13,900 to USD 15,500.
In the event that the price falls below USD 15,100 and buyers do not see this as an opportunity to buy during a fall, there is a possibility to re-test the USD 14,000 to USD 13,800 level as support.
While a fall of 9% ($1,400) is somewhat disturbing, re-testing lower support is perfectly natural and healthy after strong rallies such as we saw this week.
The altcoins finally found their way
While the price of Bitcoin is looking for direction, the altcoins have regained a bit of the vast territory they lost in the last two months. Ether (ETH) is the most notable leader in recent days, as the altcoin reached USD 447 and is currently trying to break resistance at USD 450.
Yearn Finance (YFI) also made a strong move, rebounding over 30% to USD 11,100. Uniswap’s UNI token also made a strong move, adding 15.5% and currently priced at USD 2.53.
According to CoinMarketCap data, the total capitalization of the crypto currency market is currently USD 444.6 billion and Bitcoin’s dominance rate is 64.7%.