Bitcoin Reaches a Juncture as Bulls Try to Thwart Selloff to $17,000
Bitcoin has been facing some immense volatility throughout the past few days and weeks, with sellers stepping up and trying to invalidate the strength seen by the cryptocurrency as they hold it below the key $19,000 level.
A sustained bout of trading below this level will certainly degrade its technical strength. Still, the intensity of each selloff seen following rejections at its all-time highs appears to be diminishing.
This signifies that the cryptocurrency is growing technically stronger, as the series of higher-lows formed in the time since it plunged to $16,400 last week is an incredibly positive sign for the cryptocurrency.
Where it trends in the mid-term may depend largely on whether or not bulls can hold its price within a key channel that has been formed throughout the past few days.
One trader is looking to this channel’s boundaries for insight into where it might trend in the near-term, noting that a break below its lower boundary at roughly $18,500 could lead it significantly lower in the days ahead.
For the time being, however, the cryptocurrency remains above this key support, with bulls ardently attempting to push it above $19,000.
Bitcoin Shows Signs of Strength as Bulls Set Higher-Lows
One promising trend seen over the past week is the formation of higher-lows following each rejection at the cryptocurrency’s all-time highs within the mid-to-upper $19,000 region.
Following its first visit towards this level last week, the cryptocurrency’s price plunged as low as $16,400 before finding support and rebounding. A rejection and dip followed the second attempt to break above its highs to lows of $18,200.
If this trend persists, it is a sign that bears are losing their control over this level and may indicate that a breakout into the $20,000 region is imminent.
Trader Claims Move Towards $17,000 Could Soon Take Place
One trader explained in a recent tweet that a break below a channel that Bitcoin is currently caught within could lead it to plunge towards $17,000.
He pointed to this pattern in a chart, showing that a break below the mid-$18,000 region would open the gates for a move significantly lower.
“BTC: See if the channel holds or not. Either way would like to play the range from the lows around 17 for a bounce.”
Image Courtesy of TraderXO. Source: BTCUSD on TradingView.
The coming few days should provide some insight into whether this bearish possibility will come to fruition.
Featured image from Unsplash. Charts from TradingView.