Weekend Fakeout? Analysts Wary of Latest Bitcoin Rally as Price Passes $19k
- Bitcoin has seen a strong push higher today that allowed its price to break above the key $19,000 level that has been so pivotal for its price action
- This rally came about after a period of weakness that caused the crypto to plunge as low as $17,600
- The selling pressure seen around its current price is quite intense, as $19,400 has long been a strong resistance level for the cryptocurrency
- Whether or not it can break above this level should provide some serious insights into its near-term price action
- A break above this level could open the gates for the crypto to see significantly further gains that potentially send it past its all-time highs
- One trader is wary of this movement, however, noting that it could be a classic “weekend fakeout” that has led it into resistance
Bitcoin has been caught within some turbulent waters as of late, with its price plunging to lows of $17,600 earlier this week before garnering some massive buying momentum that has led its price back up towards its all-time highs.
It still has a couple of hurdles to surmount if it is to see any further momentum, with the resistance at $19,400 and $19,800 both being formidable levels that it needs to break above.
One trader is awaiting a break above these levels before he flips fully bullish.
Bitcoin Shows Signs of Strength as Bulls Break $19,000
At the time of writing, Bitcoin is trading up just under 2% at its current price of $19,200. This is around the price at which it has been trading throughout the morning.
The move to this level came about shortly after the crypto saw a massive surge that came about due to a strong reaction to the support that it has within the upper-$17,000 region.
Beware of Weekend Rallies: Trader Awaits Resistance Break Before Flipping Bullish
One trader explained in a recent tweet that he is awaiting a break above $19,400 and $19,700 before he flips bullish on Bitcoin, noting that it is still trading well-below its key resistance levels.
“BTC – Not sure what to make of this 1k move up over the weekend. Nevertheless its Sunday and I’m staying flat going into the new weekly open. Flip 19.4s and next target would be Monthly open around 19.7s. Price into resistance here.”
Image Courtesy of TraderXO. Source: BTCUSD on TradingView.
The coming few days should shine a light on where Bitcoin will trend in the mid-term, as its reaction to these resistance levels should shine a light on its mid-term outlook.
Featured image from Unsplash. Charts from TradingView.