Will Bitcoin (BTC) Price Struggle To Surpass $17300 Lead To Deeper Correction?

The Bitcoin price remains trapped within a narrow range, setting indecisiveness in the crypto market. However, the daily chart shows reversal signs at the range’s top resistance, which may plunge the prices back to the $16800 mark. Anyhow, is there a way for Bitcoin to end this consolidation?

Key points:

• A potential reversal from $17300 indicates prolonged consolidation in Bitcoin 
• The 50-day EMA stands as a dynamic resistance to rising prices
• The intraday trading volume in Bitcoin is $12.7 Billion, indicating a 12% drop

Source-Tradingview

Over the past two weeks, the Bitcoin price has been strictly moving within two horizontal $17300 and $16800, indicating an evident range-bound rally. After a massive inflow on November 8th, the coin price rebounded from the $16800 support and hit the $17300 resistance in one strike.

However, the buyers still struggle to escape this range, indicating the sellers continue to defend the higher levels. The higher price rejection candles at the $16800 barrier accentuate a high possibility of a bearish reversal.

Thus, this reversal set the Bitcoin price to tumble 2% to revisit $16800 support, suffering the ongoing consolidation will extend for a few more sessions.

However, the trades will need a breakout from the aforementioned range barriers to initiate a directional rally and possible targets.

Will Bitcoin price prolong its downfall?

A recent tweet from the on-chain data provider, glassnode, accentuates the realized loss by Bitcoin investors. The data shows the investor has realized over the last 365 days but also highlights a yearly Profit of $455B realized in the 2020-21 bull.

Surprisingly, this capital loss of 47% bull market gains is similar to the scale of the 2018 cycle. 

Furthermore, these losses indicate weakness in holders’ confidence which lean the market sentiment toward a selling motive.

Anyhow, will the market repeat history and trigger a rally like 2019, is a bit early to tell.

Technical investor:

Relative Strength Index: the RSI indicator(49.8%) reflects the speed and magnitude of the coin’s recent price, indicating a neutral outlook from market participants.

EMAs: the downloading EMAs(50 and 100) suggest an overall downtrend and give sellers an upper hand.

Bitcoin Price Intraday Levels

• Spot rate: $17154
• Trend: Bullish
• Volatility: Medium
• Resistance levels- $17300 and $15700
• Support levels- $16800 and $15700