Bitcoin
If Bitcoin Defends One Crucial Level, It May Soon Push Significantly Higher
- Bitcoin appears to be forming a new consolidation phase as it trades between lows of $10,000 and highs of $10,800
- The cryptocurrency has been trading squarely between these two levels for the past several hours, being unable to post any notable rebound from yesterday’s downturn
- The weakness that it expressed yesterday struck a serious blow to its near-term outlook, as it showed that the benchmark cryptocurrency might not have enough strength to maintain its position within the five-figure price region
- One analyst is now noting that the continued defense of one key level could be enough to send Bitcoin surging significantly higher
Bitcoin and the entire cryptocurrency market are stabilizing following the intense bearishness seen yesterday.=
The strength BTC has expressed so far has been rather tempered, but bulls have been able to guard against any dip below $10,000.
One analyst is now noting that the cryptocurrency’s descent happened to grind to a halt the second it reached the upper boundary of its cloud formation, with this level acting as strong support.
He believes that a sustained bout of trading above this level could propel BTC significantly higher, helping it to reverse the technical damage done by this latest selloff.
Bitcoin Shows Signs of Weakness as Analysts Closely Watch Reaction to $11,000
At the time of writing, Bitcoin is trading up 3% at its current price of $10,450. This is around the price at which it has been trading throughout the past several hours.
Bulls were able to stop it from breaking below $10,000 yesterday, but have not yet been able to catalyze any type of strong movement towards its near-term resistance around $11,000.
One analyst is particularly looking towards its potential reaction to any visit to the lower-$11,000 region.
“Here’s my BTC TA: 1) Neck-line 11’260$, bearish until reclaim and hold above. 2) 8’140$ area = yearly pivot, I’d looks for buys.”
Image Courtesy of SalsaTekila. Chart via TradingView.
BTC Defends Key Technical Level Throughout Ongoing Selloff
Another analyst observed that Bitcoin has been defending against a dip below the upper boundary of its weekly cloud formation, which exists around $10,000.
“You can’t make this up, dumped stopped upon contact with the weekly cloud. Hopefully it holds,” he explained while pointing to the below chart.
Image Courtesy of Teddy. Chart via TradingView.
If Bitcoin can continue holding above $10,000 in the near-term, bulls must step up and propel the cryptocurrency up towards, and past, the lower-$11,000 region.
Featured image from Unsplash. Charts from TradingView.
- Bitcoin has seen some mixed price action as of late, with bulls being unable to take control of its trend in the time following its rally up to $28,500
- The rejection here was quite intense, and it has yet to show any signs of strength in the time following this occurrence
- The fact that bulls have guarded against any deeper drawback is positive because it invalidates the possibility that this recent high is a blow-off top
- One trader is now noting that there is an incredibly bullish indicator that is flashing for Bitcoin
- He points to the cryptocurrency’s monthly RSI, noting that a monthly close above a specific level that it is nearing is historically followed by parabolic moves higher
- In the past, these movements have had an average return of 1,010%, but their size and length seem to diminish with time
Bitcoin and the entire crypto market have declined over the past 12 hours, which appears to be the direct result of the pressure that XRP is placing on the market due to its latest selloff.
Where the market trends in the mid-term likely won’t depend on XRP, which means that this latest round of selling pressure may mark a knee-jerk reaction from investors.
One analyst is noting that Bitcoin’s monthly RSI is flashing an incredibly bullish sign for where BTC trends next.
Bitcoin Struggles to Gain Momentum Following $28,500 Rejection
At the time of writing, Bitcoin is trading down just over 1% at its current price of $26,700.
The crypto has been trading between the upper-$26,000 region and the lower-$27,000 region throughout the past few days.
It has yet to garner enough buy-side support to break above the heavy resistance laced throughout the lower-$28,000 region. For now, this peak could mark a blow-off top.
Indicator Suggests BTC is About to Go Parabolic
One trader explained in a recent tweet that Bitcoin could be on the cusp of seeing a parabolic move higher in the days and weeks ahead.
He points to the cryptocurrency’s monthly RSI as an indicator for this possibility.
“BTC – Monthly RSI. Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”
Image Courtesy of il Capo of Crypto. Source: BTCUSD on TradingView.
The coming few days should shed light on Bitcoin’s trend, as continued weakness could confirm $28,500 as a local high and lead to a deeper retrace.
Featured image from Unsplash. Charts from TradingView.
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