- Bitcoin has seen some mixed price action as of late, with bulls currently trying to form a breakout rally as the crypto pushes towards key resistance
- It did face a somewhat strong rejection earlier today that has since led it lower, which could be a grim sign for what comes next
- One trader said in a recent tweet that BTC’s near-term outlook likely depends wholly on whether or not it can continue pushing higher and break this resistance
- A continued decline could lead to serious downside in the days and weeks ahead, potentially sparking a capitulatory selloff
- This remains a distant possibility, however, as bulls appear to be gaining increased strength
Bitcoin and the entire crypto market have seen mixed price action as of late, with both bulls and bears being unable to gain any clear control over the crypto’s price action.
Buyers have been showing some signs of vitality as of late despite a bearish sentiment across social media, which could mean that an upwards expansion phase is coming.
For this possibility to be confirmed, bulls must shatter one key resistance level that has been holding strong throughout the past few days and weeks.
Bitcoin Gains Momentum But Still Faces Intense Resistance
At the time of writing, Bitcoin is trading up just under 4% at its current price of $34,720, which marks a notable rise from recent lows of $29,000 that were set last week.
The crypto has been rising ever since it broke below $30,000, which has continued to be a bedrock support level for the cryptocurrency.
BTC rejected last night at a key level that analysts have been watching for quite some time. A continued downtrend could signal that significant losses are imminent.
Analyst Claims BTC Still Has Yet to Break Key Resistance
Despite the strength seen overnight, analysts are now noting that Bitcoin could be poised to see further downside.
One trader explained that he is bearish until BTC breaks above a trendline that was tested during the overnight pump. He anticipates a move down to the low-$20,000 region in the mid-term.
“At key resistance now. If bulls are strong enough and clear current resistance i’ll flip bias to bullish.”
Image Courtesy of Wolf. Source: BTCUSD on TradingView.
The coming few days should provide some serious insight into where the aggregated crypto market will trend in the mid-term, as it all depends on Bitcoin.
Featured image from Unsplash. Charts from TradingView.