- The falling Bitcoin exchange reserve supported the idea of accumulation.
- Bitcoin showed a bullish structure and is highly likely to break the $100k level in December.
Bitcoin [BTC] has traded within a range over the past two weeks. This short-term consolidation is unlikely to be a distribution phase, as the buying pressure remained strong as per technical indicators and on-chain evidence.
Profit-taking activity was minimal, and significant sell-offs were not seen either.
Bitcoin price prediction is bullish due to…
Source: BTC/USDT on TradingView
On the daily chart, Bitcoin continued to retain its bullish structure. The recent higher low at $90,791 must be breached with a daily trading session close before this structure would flip bearishly.
The recent consolidation beneath the $98k resistance zone saw the Money Flow Index (MFI) cool down considerably. It remained bullish but was near the neutral level at 50, outlining the possibility of further growth.
This growth is more likely than a deeper price correction because the CMF was well above the +0.05 level. It showed that capital inflow was sizeable, and that demand was high. Exchange reserves have been falling in recent weeks and are below June 2018 levels, showing steady accumulation.
Source: BTC/USDT on TradingView
The 4-hour chart captured the consolidation phase more clearly. A range formation between $92k and $99.4k was observed, with the mid-range level at $95.7k acting as support for the past ten days.
A drop below $92k on the 4-hour chart would be the first sign of bearishness. However, this could also be a false alarm, as a deviation below the range might be followed by a swift rally to shake out highly leveraged longs and overeager short sellers.
The $100k magnetic zone beckons bulls
Source: Coinglass
Over the past two weeks that Bitcoin has traded within the highlighted range, a cluster of liquidation levels have been growing at the $99.8k level. The short-term Bitcoin price prediction is bullish, the price will likely visit this magnetic zone in the coming days.
Read Bitcoin’s [BTC] Price Prediction 2024-25
The cluster of short liquidations could see a liquidation cascade and a swift move even higher. To the south, the $90k-$93.5k region is a support zone.
Traders should be prepared for more volatility as BTC approaches the psychological $100k mark.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
