- The declining Bitcoin exchange reserve supported the idea of accumulation.
- Bitcoin showed a bullish structure and will most likely break the $100,000 level in December.
Bitcoin [BTC] has traded within a certain range over the past two weeks. This consolidation is unlikely to be a distribution phase in the near term as buying pressure remains strong, as shown by technical indicators and on-chain evidence.
Profit taking was minimal and there was no significant sell-off activity.
Bitcoin Price Prediction Is Bullish Due…
Source: BTC/USDT on TradingView
On the daily chart, Bitcoin maintained its bullish structure. The recent higher low at $90,791 needs to be broken with a daily trading session for this structure to turn bearish.
The recent consolidation below the USD 98,000 resistance zone caused the Money Flow Index (MFI) to cool significantly. It remained bullish but near the neutral level at 50, underscoring the possibility of further growth.
This growth is more likely than a deeper price correction, as the CMF was well above the +0.05 level. This showed that capital inflows were significant and demand was high. Foreign exchange reserves have been traps in recent weeks and are below June 2018 levels, showing steady accumulation.
Source: BTC/USDT on TradingView
The 4-hour chart showed the consolidation phase more clearly. A range formation between $92k and $99.4k was observed, with the mid-level of $95.7k acting as support over the past ten days.
A drop below $92k on the 4-hour chart would be the first sign of bearishness. However, this could also be a false alarm, as a deviation below the range could be followed by a quick rally to shake out highly leveraged longs and overzealous short sellers.
The $100,000 magnetic zone beckons bulls
Source: Coinglass
Over the past two weeks that Bitcoin has been trading within the marked range, a cluster of liquidation levels has grown at the $99.8k level. The short-term Bitcoin price forecast is bullish; price is likely to visit this magnetic zone in the coming days.
Read Bitcoin’s [BTC] Price forecast 2024-25
The cluster of short liquidations could see a liquidation cascade and a rapid move to even higher levels. To the south, the region from $90,000 to $93,500 is a support zone.
Traders should be prepared for more volatility as BTC approaches the psychological $100,000 mark.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer