Bitcoin price is consolidating in the $17,000 zone going into the second trading weekend of November. After a jaw-dropping crash earlier in the week, the bulls have pulled off their first retaliation. Now traders must decide which side of the trend they want to join. Key levels have been identified to gauge the next directional move.
Bitcoin price could retaliate further
Bitcoin price has traders watching the technicals closely as the next move could yield a very profitable opportunity. Following a 25% selloff, the peer-to-peer digital currency pulled off a bullish retaliation, recovering 16% of its lost market value. Now the bulls and bears are sparring within a consolidation range near $17,000, likely going on throughout the weekend. Still, the resolve from the current consolidation could be the catalyst that defines Bitcoin’s future price action for weeks to come.
Bitcoin price currently trades at $16,818. The early week selloff enabled the bears to print a new yearly low at $15,632. The Relative Strength Index shows a bullish divergence between the new low and the June 18 lows that catalyzed the summertime bullrun.
Based on the RSI divergence, Bitcoin may have underlying bullish strength. If the technicals are correct, Bitcoin price could challenge the bears who have recently entered the market. The first target could be near $20,000, while a capitulation to the upside could forge a rally into the $23,400 swing high as an extended target.
Invalidation of the bullish idea is a breach below $15,900. If the level is tagged, the new lows will likely get breached, and an additional decline toward $2020 liquidity levels in the $14,000 zone will likely be Bitcoin’s next landing ground. The bearish scenario would result in a 15% dip from the current market value.