Cryptocurrency News Price Analysis

What Might Trigger New Upside as Bitcoin (BTC) Consolidates at $17K?

Jim Smith
  • BTC tested the support floor at $16.8K as it explored the $16,888 lows.
  • Bitcoin trades at around $17K and the 100-hourly SMA.
  • The hourly chart shows a break beyond a crucial constricting triangle with $17K resistance.
  • BTC/USD should stay beyond the support at $16.8K to trigger new upticks.

Bitcoin started another drop from the resistance at $17.5K. The crypto hovers beyond the foothold of $16.8K, and new upward actions might emerge. Let us check what BTC might present to enthusiasts in the upcoming session.

BTC Holds Crucial Support

Bitcoin price tried another uptrend beyond the resistance of $17.5K. Nevertheless, the largest crypto by value could not conquer the $17.4K hurdle. That saw BTC printing a high at around $17,770 before downward corrections emerged.

That saw a move beneath the footing of $17.2K and 100-hourly SMA. Nevertheless, bulls remained active beyond the $16.8K support. The asset formed a low at $16,888, and Bitcoin consolidated the losses.

There was a brief uptick beyond $17K. While publishing this blog, Bitcoin changed hands at around $17,035.57. Also, the leading cryptocurrency wavers near the 100hr SMA. Besides, it presented a break beyond the 23.6% Fibonacci retracement zone of the latest dip to $16,888 from $17,440.

Furthermore, BTC/USD’s hourly chart shows a break beyond a crucial constricting triangle with $17K resistance. Upward movements would meet the nearest resistance at $17,170.

The hurdle stands near the 50% Fibonacci retracement mark of the latest fall to $16,888 from $17,440. The first massive obstacle stands at $17.2K, beyond which BTC could kick-start a stable upsurge.

Such actions might push the prices toward the resistance at $17,450. Meanwhile, overcoming this obstacle would trigger uptrends toward the hurdle at $17.5K. Overcoming this zone can see Bitcoin climbing to $18K in the short term.

More Bitcoin Losses?

Downward narratives might surface if BTC fails to push past the $17,170 obstacle. The immediate foothold stands at $16,880. Further dips would meet the support at $16.8K.

Violating this barrier to the downside can bring $16.5K into play. Further bearishness at this level may catalyze a test of the crucial support region at $16K in the short term.

All BTC Investor Cohorts Have Cost-Basis at $18.7K – $22.9K – What Does It Mean?

The latest Glassnode data indicates that the different BTC investor categories have their cost-basis in a restricted range at around $20.2K. The Cost-basis is the price BTC investors pay to purchase the tokens.

The market comprises two primary investor groups – long-term and short-term holders. The short-term holder (STH) cohort includes investors that bought their assets within the past 155 days, whereas long-term holders (LTHs) have held their coins for over 155 days.

Statistically, LTHs are less likely to sell anytime, as keeping the assets longer makes the tokens less probable to crack their dormancy.

Glassnode’s chart shows STHs’ cost-basis has slumped amidst escalating bear markets, a logical thing as this category only includes market participants that purchased recently. Remember, crypto prices have been dipping lately.

Meanwhile, LTH’s cost-basis saw a slight upside as investors that purchased during higher prices have joined this cohort. The metric reads $22.9K. That’s not far from the $18.7K STHs cost basis and the broader market’s $20.2K cost basis.

That means the different investor cohorts in the prevailing market purchase their crypto at similar costs. It implies that the holders’ risk & opportunity are similar. Therefore, the overall market might start to act in a cohesive style in reaction to volatility.