The price of Bitcoin (BTC) has been seeing a massive run in contempo months as information technology surged by virtually 100% from $ten,000 to $xix,800. Still, the all-time high region at $xx,000 has been showing meaning resistance, causing the price to drop several times including today, equally BTC has now fallen beneath $19,000 on Dec. 4.

The chances of a correction accept been slowly increasing amid diminishing volume in recent days. Multiple arguments can exist made for a deeper correction, which wouldn't necessarily be bad for the market in general.

All-time high region still major resistance

BTC/USD ane-day nautical chart. Source: TradingView

The all-time high region has not been broken yet, equally the chart shows. This is not unexpected, withal, as many retail investors will have the all-fourth dimension loftier of 2017 as a marker for potential profit-taking. It's the terminal hurdle earlier Bitcoin goes into price discovery, which would make the next targets difficult to determine.

Given that Bitcoin'due south cost reached the all-time high in a nearly vertical manner, a clear-cut breakout above the all-time high doesn't seem likely to occur at this point.

However, as long as Bitcoin's price remains in this region, several arguments can exist fabricated for a potential correction.

Specifically, the book is dropping severely on the recent effort to suspension $20,000 indicating a potential weakening of momentum. 2nd, the current best loftier tests open up the door for a possible bearish divergence on the daily timeframe.

This bearish deviation isn't confirmed withal, but it shows some potential signals of a slight trend reversal. In example of a correction, the key areas to sentry for back up are $16,000 and $fourteen,000.

The 2014 high didn't intermission in one get, either

BTC/USD 1-twenty-four hours chart 2016. Source: TradingView

The current cost action is comparable to the price activeness in the previous cycle. The 2014 top acted as the last resistance, subsequently which a pregnant correction of thirty% took identify.

This correction often leads back to the previous resistance, and as the nautical chart shows, this resistance was at $800.

The previous high then flipped for support through that correction, which caused the price of Bitcoin to go on rallying to new all-fourth dimension highs.

BTC/USD 3-mean solar day chart. Source: TradingView

Every bit markets often act the aforementioned way in every wheel, a like correction of 30% would put the price of Bitcoin at $xiv,000. Additionally, the previous high in June 2019 is as well at $14,000, making it a likely target for a potential support/resistance flip.

Such a correction of thirty% wouldn't exist unhealthy for the market and is quite common. It may also give latecomers a beautiful entry opportunity to boot.

Levels to watch on the lower timeframes

BTC/USD 1-hour chart. Source: TradingView

The lower timeframes are indicating a potential reversal is in the making. The range is defined, with the support at the greenish zone effectually $xviii,500. This level has to hold for support to sustain the upwards momentum.

If it fails to sustain back up, the $16,000 surface area's retest is very likely. Still, if the marketplace wants to maintain bullish momentum, the upper resistance at $nineteen,500 needs to break to warrant farther continuation. Nevertheless, a classic bearish back up/resistance flip is occurring here.

The $19,400 used to exist resistance, later on which a fake breakout occurred. Such a failed breakout often is confirmed through the previous resistance condign resistance once again, as the chart shows.

Therefore, for further upward momentum, the U.S. dollar has to continue showing weakness, and the toll of Bitcoin must interruption through $xix,500. If that doesn't happen, retests of $eighteen,500 and possibly $sixteen,000 are on the table.

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