Bitcoin (BTC), the biggest cryptocurrency by market capitalization, is trading at $9,375 representing a 0.2% loss in value in the last 24 hours and the same for today’s session.
The wider crypto market is generally following Bitcoin, with Ethereum’s Ether (ETH) down around 0.27% and XRP underperforming but still relatively flat down less than 1% at $0.19 XRP. Meanwhile, Bitcoin dominance remains flat at 65% after a strong couple of weeks by the alts.
Cryptocurrency market 24-hour view. Source: Coin360
The 1-week chart for Bitcoin shows seven weeks of consolidation below the $10K handle — a price point that has been elusive support since September 2019.
Trading continues to take place above all key weekly moving averages (MA), with the 50 and 20-week MAs playing an important recent role in supporting price. While price remains above the 20,50,100 and 200 week moving averages, it is reasonable to describe the market as bullish while consolidating below resistance. Bitcoin is yet to print a higher high and turn 10K into support, which would be the indication that BTC/USD is in a bull market.
BTC/USD 1-week chart. Source: Tradingview
Overall, the volume has been decreasing as would be expected during bullish consolidation. The On Balance Volume (OBV) indicator, which can highlight where there is a deviation between volume and price action, shows the lack of higher highs. This is largely a consequence of the high volume sustained weeks of rejection when prices were below $8K.
A breakdown in the OBV while the price is maintained may be an indication of weakness, but this has not yet been seen and the lower volume consolidation appears to continue to favor the bulls for now.
Key support for Bitcoin could be expected around the yearly pivot and the 50 and 20-week moving averages, which are complemented by high volume interest at this level at around $8,150-$8,650.
Any breakdown for Bitcoin would most likely see this level as an important battleground, with the 100-week MA at $7,250 being the next level to look for since it was an important resistance level during the ascension from $4K.
Looking at the daily chart, it is easier to see that Bitcoin continues to apply pressure to $10K, with around four concerted attempts to break it, whereas price lows are generally higher lows.
As such, this is the longest consolidation for Bitcoin below $10K and is one that shares characteristics of a bullish consolidation triangle, which — if it played out — would imply a move to the upside towards $12,000.
Should the triangle break to the downside, there are the 200 and 100-day moving averages, both also in the key support area just north of $8K. As it stands, the 50-day MA is supporting the price, having been tested multiple times this week.
BTC/USD 1-day chart. Source: Tradingview
The 1-day volume emphasizes the recent volume drop off, but the OBV shows to also be putting in higher highs on the daily chart meaning that the bearish volume in…