- CEO of Eight Global Michael states that BTC is consolidating at its previous support level.
- The Bollinger bands are contracting. Hence there could be less volatility.
- The 200-day MA is acting as the immediate resistance if BTC could break it.
Chief Executive Officer and Co-Founder of Eight Global, Michael van de Poppe tweeted that BTC was consolidating its position while fluctuating below the $16.9K support level.
Moreover, Michael stated that everyone expected BTC to drop to $16.5K for a long position; however, Michael believes that BTC will go bullish and $16.9K will become its support once again.
Meanwhile, Bitcoin is up 0.25% in the last 24 hours and is trading at $16,842.70. When considering the seven-day chart below, Bitcoin (BTC) has been trading in the red zone except for a speck of green that could be seen on December 5.
Within the last seven days, BTC reached its highest price of $17,371 and hit its lowest of $16,771.
Notably, BTC has been fluctuating in a rising wedge since the beginning of December. There has been more sideways movement for BTC within the wedge. Moreover, the 200-day MA (yellow line) is acting as the immediate resistance, and Michael’s predicted resistance area, too, seems to lie very close to the 200-day MA as shown in the chart.
The Bollinger bands are contracting, which means that there are going to be more sideways movements with less volatility. Hence, we could expect the prices of BTC to rebound and consolidate as per Michael’s prediction.
However, if the bulls create enough momentum and BTC breaks through the 200-day MA, then BTC will target Resistance 1 at approximately $18,255. With more push from the Bulls, BTC will target Resistance 2 at $19,000.
Contrastingly, if the bears rule the market and BTC manages to break its currently residing territory based at around $ 16,850, it will be looking to land on Support 1 at $16,360. With more dominance from the bears, the price of BTC could tank to $15,475.
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