Bitcoin Surges After Bulls Defend Key Level; What Analysts are Watching For
Bitcoin is in the process of pushing higher today, with bulls aiming at sending the cryptocurrency up towards the resistance that it has long faced within the mid-to-upper $19,000 region.
If the selling pressure here remains constant and continues hampering the cryptocurrency’s growth, then bears may be poised to gain some control over BTC’s price action and send it reeling down towards $18,000 once again.
Where it trends in the mid-term will depend largely on whether or not it can maintain the trend of setting higher-lows after each rejection around its highs.
Last week, BTC plunged as low as $16,400 after facing a rejection around $19,500. Earlier this week, a rejection around the same price level caused it to plunge to lows of $18,200.
If it faces another rejection at these highs, bulls must hold it above $18,200 to continue setting higher-lows.
One trader is now noting that the continued defense of the mid-$18,000 region seen throughout the past few days and weeks is a bullish development for the cryptocurrency and may indicate that further upside is imminent in the near-term.
Bitcoin Pushes Towards Critical Resistance Level
At the time of writing, Bitcoin is trading up over 1% at its current price of $19,530, marking a massive climb from its recent lows of $18,200 set earlier this week.
These lows came about shortly after the cryptocurrency rallied past $19,800 and faced an immense rejection.
The selling pressure here has sparked multiple selloffs, and it remains unclear whether or not the next test will allow it to break above this region.
Analyst Claims BTC Strong After Holding Key Support
One trader explained in a recent tweet that Bitcoin is growing stronger the longer it holds above the mid-$18,000 region.
He notes that the buying pressure here has been quite intense and that the cryptocurrency’s trend may remain firmly in bulls’ favor so long as it doesn’t face any intense selloff.
“BTC update: Looks like the apes won this round. Generally, the $18.3-$18.7 area is an important one, violate it and best case we chop, worst case we shake out/correct. Any low timeframe bullishness hinges on that support level which so far seems to be holding.”
Image Courtesy of DonAlt. Source: BTCUSD on TradingView.
Whether or not Bitcoin can hold firmly above the mid-$19,000 region should provide insight into where it will trend as the end of the year approaches.
Featured image from Unsplash. Charts from TradingView.