- Bitcoin saw wild price moves overnight, causing its price to surge to $ 19,600 before facing a rejection that brought it down to $ 19,050
- It has found serious support at this level, which has boosted its price action in time since then and is now trading a little over $ 19,400
- This has long been a level of resistance for crypto, but the selling pressures noted earlier here appear to be rapidly deteriorating
- As such, BTC may be well positioned to see further upward moves in the medium term. The final critical region of resistance is between $ 19,600 and $ 20,000
- Once that region is firmly broken above, the crypto will likely see a higher parabolic trend
Bitcoin and the entire cryptocurrency market have sent mixed signals to investors as multiple bouts of volatility clouded the clarity of the market outlook.
Last week the price of BTC fell to lows of $ 17,600 before finding strong support that allowed it to eventually move higher.
Last night it rose as high as $ 19,600, forming a seemingly bullish breakout. However, this once again caused the crypto to face a sharp surge in selling pressure that caused it to surge to $ 19,000.
Though it has risen higher since then, one analyst expects Bitcoin to see more of these “traps” in the near future.
Bitcoin is gaining momentum overnight despite rejection
At the time of writing, Bitcoin is trading just under 1% at its current price of $ 19,400. This is a notable increase from the daily lows of $ 19,050 overnight, but a slight decrease from the highs of $ 19,600.
Where it goes next will likely depend largely on whether or not it is rejected again due to resistance just above its current price level.
BTC no longer sees any “traps” here
Bitcoin has seen several bull and bear traps lately, which has made it increasingly unclear where the cryptocurrency could head next.
One trader believes these fake-out moves will continue until the crypto raises a weekly candle just above its $ 19,700 resistance.
“The consolidation below the resistance pattern for BTC dollars can easily be assessed by looking at medium-term averages that have lost momentum recently. For a massive upward continuation, it only takes a weekly candle to close the resistance. Until then, many traps. “
Image Courtesy of CryptoBirb.
Until that weekly candle close, it won’t be easy to trust the crucial upward moves in Bitcoin.
Featured image from Unsplash. Charts from TradingView.