Bitcoin Seems to be Consolidating Around Short-Term Support Zone

After facing a massive Skyfall, Bitcoin seems to be stabilizing after it tested the major support zone at $30,000 zone. This can be considered as stabilizing the market correction as Bitcoin consolidates over the past week.

At the time of writing, Bitcoin is at $39,400 and its short-term support appears to be $36,400 in my personal analysis. However, it keeps rejecting $42,000 which still need to break in order to build a market reversal.

For a good thing, I see the market keeps trading above the 100-period moving average on the hourly chart. There’s another one I noticed. There’s a reverse head & shoulders pattern on every hourly chart which could be a signal for an up-trending market.

But this is something I just noticed. It couldn’t be powerful enough to make a reversal to the Bitcoin price. Even it cannot be considered as perfectly formed head and shoulders since the market pushed all the way below the head level before.

The interesting fact is, Bitcoin keeps resisting the neckline of the above-mentioned reverse head and shoulders. And Bitcoin’s price change is just -3% over the past week which confirms the consolidation period.