Key Points
- Bitcoin’s bullish structure suggests a potential break of the $100k level in December.
- Steady accumulation is evident as Bitcoin exchange reserves have been on a decline.
Bitcoin [BTC] has been trading within a certain range in the past fortnight. This period of short-term consolidation doesn’t appear to be a distribution phase as buying pressure has remained robust according to technical indicators and on-chain data.
There hasn’t been much profit-taking activity, and significant sell-offs are absent.
Bitcoin’s Bullish Price Prediction
On the daily chart, Bitcoin’s bullish structure persists. For this structure to turn bearish, the recent higher low at $90,791 must be surpassed with a daily trading session close.
The recent consolidation under the $98k resistance zone has allowed the Money Flow Index (MFI) to cool down significantly. Although it remains bullish, it’s near the neutral level at 50, indicating potential for further growth.
Capital Inflow and Accumulation
This growth is more probable than a deeper price correction as the CMF is well above the +0.05 level. This indicates that capital inflow is substantial, and demand is high. Exchange reserves have been declining in recent weeks and are now lower than levels seen in June 2018, indicating steady accumulation.
The 4-hour chart provides a clearer view of the consolidation phase. A range formation between $92k and $99.4k can be seen, with the mid-range level at $95.7k serving as support for the past ten days.
A drop below $92k on the 4-hour chart would be the first indication of bearishness. However, this could also be a false alarm, as a deviation below the range might be followed by a swift rally to shake out highly leveraged longs and overeager short sellers.
The $100k Magnetic Zone
Over the past two weeks that Bitcoin has traded within the highlighted range, a cluster of liquidation levels have been growing at the $99.8k level. The short-term Bitcoin price prediction is bullish, the price will likely visit this magnetic zone in the coming days.
The cluster of short liquidations could trigger a liquidation cascade and a swift move even higher. The $90k-$93.5k region serves as a support zone.
As BTC approaches the psychological $100k mark, traders should brace for more volatility.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
