Since peaking at $15,975 late last week, BTC has fluctuated between those highs and lows around $14,800.
This price action has resulted from increased volatility in the US dollar price as investors grapple with news of a viable vaccine for the Covid-19 pandemic.
Yesterday’s plunge in BTC prices from highs of $15,800 to lows of $14,800 wiped out over-leveraged positions from both bulls and bears and has marked a consolidation phase for the king coin. Over the past 24 hours, the flagship cryptocurrency has consolidated squarely between these two levels.
As of this article’s writing, BTCUSD has managed to break above the $15.5K level of resistance. The coin trades close to recent highs at its current price of $15,776.
BTCUSD Chart By TradingView
BTC Price Likely to Face Prolonged Consolidation Phase
Following the recent rebound from $14,800, the king coin has faced some intense selling pressure around $15,400. Every attempt to trade sustainably above this level has quickly been cut short by sharp declines.
That said, the aggressive buying pressure seen on each dip indicates that the BTC rally is fuelled by immense underlying strength. It remains unclear as to the digital asset trends next, as any continued spell of consolidation could confirm $16K as a long-term top, thereby triggering a massive sell-off.
Trader Big Chonis, however, suggests that the world’s leading cryptocurrency is on the cusp of entering a prolonged bout of sideways trading.
While sharing his outlook on where BTC might trend in the near-term, he pointed to several technical indicators that show a consolidation phase is coming in the days ahead.
ETH price Could Rally To $500
Ethereum, the second-largest cryptocurrency by market cap, is slowly rising and trading above the $460 resistance level.
The ETHUSD pair started the day by showing positive signs above the $455 support after forming a support base above $440.
The upward move has driven the ETH price to the $471 mark during press time, with the bulls looking primed to break above important barriers.
ETHUSD Chart by TradingView
A successful daily close above $470 could open the doors for a sharp surge, possibly driving the altcoin towards the $495 and $500 levels.
Meanwhile, altcoins have spiraled higher over the past few days, reaping the BTC and ETH rallies’ benefits.
Popular DeFi tokens Yearn.finance and Aave have been the main beneficiaries of the recent market-wide strength, with both tokens currently trading up over 100% on the weekly charts.
