BTC struggles to fly despite clear skies up to $19,280

• Bitcoin price is showing a double-top formation that could enable a bearish divergence soon.
• On-chain calculations suggest no resistance for BTC up to $19,280.
• A four-hour candlestick below $15,894 will invalidate the bullish thesis.

The Bitcoin price is struggling to overcome a small hurdle after a fresh start to the week. A closer look reveals that BTC could easily trigger a rally, but is unable to do so despite a lack of resistance to the upside.

Bitcoin price in a pickle

Bitcoin price reveals a noticeable struggle at the November 14 high of $17,188. Although this level was swept on December 1st and earlier today, the immediate reaction suggests that sellers are still active in this region.

If this trend continues, allowing the four-hour candlestick to close to form a local top here, a bearish divergence will develop. This technical formation occurs when the Bitcoin price produces a higher high while the momentum indicator, the Relative Strength Index, sets up a lower high.

This deviation is an indication of a price increase without a strong foundation and often leads to a reversal in the uptrend. While this development may appear bearish in the short term, a retracement to $16,704 will allow buyers on the sidelines to accumulate BTC at a discount.

A resurgence of buying pressure at this level could trigger the Bitcoin price to kick-start the next rally to retest key hurdles at $17,593 and $19,235. The latter level is called the Point of Control (POC), which is the highest traded level in 2022 and is likely to provide a massive dose of selling pressure. Therefore, this barrier is a good level to book profits.

BTC/USDT 4-hour chart

Supporting this rise in Bitcoin price is IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model. This index shows that the only formidable resistance level extends from $18,740 to $19,280. Here are about 1.12 million addresses that bought 450,800 BTC “Out of the Money.”

Interestingly, this level coincides with the POC discussed from a technical perspective, making it a good level to book profits.

BTC IOMAP

While the outlook for the Bitcoin price is definitely positive, investors should note that a retracement extending beyond the $16,500 level is a sign of weakness. A four-hour candlestick below $15,894 would create a lower low and invalidate the bullish thesis for BTC.

Such a development could see the Bitcoin price pull back to the November 21 low of $15,443.