• Bitcoin price has remained above the $16K support level and is currently trading sideways below the $17,000 mark.
• The price action is characterized by a small body indecisive candlestick known as a Doji.
• A breakout is more likely when there is consolidation close to a resistance level.
The Bitcoin price has been able to remain stable and consistent above the $16K support level over the past few days. After a rebound on December 20, the price of bitcoin soared to a high of $17,066 before collapsing and beginning to consolidate below the $17,000 mark. The BTC/USD is currently trading sideways, with the price action characterized by a small body indecisive candlestick known as a Doji.
The Bitcoin market capitalization stands at $324,337,535,146, with the circulating supply at 19,243,975 BTC and the total supply at $353,955,468,884. The cryptocurrency is ranked first in terms of market capitalization on Coinmarketcap. The price of the cryptocurrency has been forced to trade in a small range below the moving average lines since the price recovery on December 20. However, the price of Bitcoin is still settling above the $16,000 level of support, but under the $17,000 ceiling. This implies that a breakout is more likely when there is consolidation close to a resistance level.
This was evident from the events of December 22, when sellers drove the price as low as $16,588. In response, the bulls pounced, pushing the price of Bitcoin to a high of $16,966 the following day. However, the $17,000 barrier turned them away, resulting in another price war. The BTC price is currently sitting at $16,854.17, with the resistance levels at $50,000, $55,000 and $60,000, and the support levels at $25,000, $20,000, and $15,000.
As the Bitcoin price continues to remain stable and consistent above the $16K support level, traders and investors will be closely monitoring the market for any signs of a breakout. If the bulls can push the price past the $17,000 resistance level and sustain the momentum, then they could open the door to a major surge in the price of BTC. On the other hand, if the bears take control of the market, then the price could fall back to the support levels and continue to trade sideways.