- Bitcoin has seen some mixed price moves lately, with bulls trying to push it higher yesterday before seeing a strong rejection that made it drop lower
- The crypto is still trading firmly within the trading range it was trapped in for the past few weeks and not much has changed from a structural standpoint
- Despite the apparent intensity of this sell-off, one analyst notes that he is not overly concerned with the prospects for BTC from a technical perspective
- He strongly advises that the possibility of an uptrend is imminent as the rally stalled shortly before reaching a key level
Bitcoin has been trading largely sideways for the past few weeks. Both bulls and bears have been unable to gain firm control over the price movement of the cryptocurrency as it fluctuates between lows of $ 30,000 and highs of $ 40,000.
Where all of the market trends in the medium term depend on which of these trading ranges are broken first. A $ 40,000 move from resistance to support would go a long way in helping the macro bull trend continue.
One analyst believes this option will come into play in the near future. In particular, he believes that a large triangle pattern that BTC has formed will also lead to a breakout that will cause it to rise higher.
Bitcoin faces strong rejection after testing $ 38,000
Bitcoin rebounded higher around midday in the US yesterday, hitting highs of $ 38,000 before its momentum stalled and it began to drift lower.
Selling pressures in the top $ 30,000 region have remained quite strong over the past few weeks.
The drop triggered yesterday quickly turned from a slight drop to a full-fledged sell-off that liquidated over-leveraged positions and eliminated crypto’s downside liquidity.
Bitcoin is currently around $ 35,000 and is trying to convert that level back into support.
BTC holds key level despite sell-off: Analysts expect upside potential
One analyst pondered the possibility that Bitcoin is currently trading within a large pennant formation. The overnight decline marks a test of the lower bound of this historically bullish pattern.
“BTC 4h: Imo there is no reason to talk about a bear market. We are about to give 5 week trendline support. Even if we lose it, we’re still in the more important bullish pennant, ”he said.
Featured image from SilverBullet. Source: BTCUSD on TradingView.
When that pennant breaks, Bitcoin will likely see a hard and fast move one way or another.
Featured image from Unsplash. Charts from TradingView.