Bitcoin is at another critical milestone the 20K mark. We saw price come up to this area earlier in the month after which price retreated "all the way" back to the $13,500 area. But price has since climbed back up and is attacking the 20K mark again.
Instead of sharp retreat, price has been consolidating just under 20K as we can see in the 1H chart below:
BTCUSD 1H Chart
- The 1H chart shows that BTC/USD formed a head and shoulders pattern just under 20K during the 12/17 session.
- It then fell and consolidated into a triangle during the 12/18 session.
- Basically, the market is not selling off as fast as the previous time BTCUSD visited 20K.
- Now if price action breaks below the triangle, we can see BTCUSD correct towards the 17800-18000 area.
- This area around 18000 will be critical. If it stays above 18000, we still have strong medium-term and long-term bullish momentum towards 20K.
- However, if price breaks below 18000, I suspect that BTCUSD will have a significant consolidation. Below 17800, we can expect support around 16500, 15000, and the 13500-14000 area.
- If price can push above 19000 and hold above 19000, we are probably going to see that push through 20K.