The crypto market experienced another crash last week. It was expected that the Bitcoin price would hold the $ 20,000 mark, but it did not succeed. So it fell even lower and reached a low of € 18,500. Today, this low price has turned into a strong medium-term support. Will the Bitcoin price rise again? Is Bitcoin Consolidation a Good Thing for the General Crypto Market? This is exactly what we would like to discuss in this Bitcoin price forecast.
Is Bitcoin Consolidation a Good thing? – Bitcoin Price Forecast
The BTC rate is currently consolidating around the important price of $20,000. To assess whether this price movement is a good development, we need to go back to the charts and look at previous consolidations and assess what happened. In the case of Bitcoin, when the price dropped to the relevant level of $30,000, we saw a brief consolidation just below that price level. This price movement took place between $27,500 and $30,000, with occasional breakouts. However, BTC prices broke through the lower support and continued to fall until they reached the next major support at $20,000.
This previous consolidation shows that a break in the lower support as part of an extended downtrend confirmed the crash towards $20,000. This is very helpful, because today’s price development is very similar. Let’s take a look at today’s Bitcoin market.
Will Bitcoin rise again after the current consolidation?
Bitcoin is currently consolidating around $20,000. The exact range of consolidation is between $18,500 and $20,000. The prices have broken down and up respectively. Taking this information into account, we can to some extent anticipate certain events based on past price developments.
In the current case, we can assume that if we break the $ 18,500 mark as part of a strong downtrend, the Bitcoin price will fall lower and reach the $ 15,000 mark. That’s why the current consolidation is a bit risky, especially for the entire crypto market, since Bitcoin still has a market dominance of more than 40%.
Bitcoin Price Forecast: When is it heading north again?
However, if the Bitcoin price manages to break through the upper resistance of $ 20,000 and stay there, we could expect higher prices in the medium term. At the moment, the fundamental market data are rather poor, which is why the long-awaited uptrend seems rather postponed.
