The price of Bitcoin (BTC) rallied again on December 13, climbing above $ 19,200 after falling to $ 17,600 on Friday. The significant increase in buyer demand in that area indicates that BTC may have just seen a short-term low.
When Bitcoin initially fell to around $ 17,700, on-chain analysts including Edward Morra and Nik Yaremchuk discovered large buy orders on Bitfinex and Coinbase.
Once the BTC price fell briefly below USD 17,700, it began to pull back quickly and reclaim USD 18,000 within three hours.
Is this the new Bitcoin run-up to its all-time high?
Conventional technical analysis suggested that the logical Bitcoin bottom would likely be set at USD 17,000. It marked the top of a weekly candle in January 2018, and it’s also an important area of support on lower timeframe charts.
Morra noted that Bitcoin may have appeared to randomly recover at $ 17,600 if traders did not observe heatmaps from the exchange.
Order books and heat maps showed that whales are bidding heavily at the $ 17,600 level, likely signaling a local bottom. Morra said:
“Finex whale protecc, note that regular charts looked pretty ugly and the price would bounce out of nowhere if you hadn’t viewed heatmaps.”
Yaremchuk, a cryptocurrency trader and on-chain analyst, shared a similar sentiment when Bitcoin hit $ 17,600. The trader arrived on December 11 said:
“$ BTC hit $ 17.6k in my opinion, this is the bottom.”
Bitcoin bouncing back from USD 17,600 is very optimistic as it pushed a higher low formation on the 4-hour chart. This means that the bottom of the recent correction is higher than the previous bottom – a trend often noticed during rallies.
Bitcoin price also started to rise after it surpassed $ 18,800, which is what Cointelegraph said identified as a potential whale cluster area and an important level of resistance.
Next levels to watch
In the short term, there are two important factors to consider. First, like Cointelegraph consistently reportedBitcoin’s selling pressure remains relatively high. Second, this would be the second retest of its highest point ever since November 30.
There is an argument that there is now less selling pressure in the short term as miners and whales sold out heavily last week. In other words, this was the long-awaited correction and the bullish U-turn is confirmed.
The likelihood of new all-time highs increases further if Bitcoin subsequently surpasses the USD 19,400 resistance with low selling pressure.
A pseudonymous trader known as “Beastlorion” said the lack of selling pressure could trigger a major rally in the short term, saying:
“The price action on $ BTC at the moment is slightly different. There is such a thing as 0 sales pressure. It feels like the price is being pulled up instead of up at this point. Just look at those volume bars. Big pump comes IMO. “