- Bitcoin saw a massive surge higher earlier today that allowed it to break above $24,000 for the first time
- Where the aggregated crypto market trends in the mid-term may depend largely on whether or not buyers can flip $24,000 into a support level
- It does appear that the selling pressure just above here is quite intense and may cause it to see continued weakness
- One trader is now pointing to the resistance just above where BTC is currently trading, noting that it could cause the cryptocurrency to see some continued weakness
- So far, it does seem to be finding some strong buy-side pressure above this key price region, but it remains unclear as to how long this will last for
Bitcoin and the entire cryptocurrency market are currently caught in another wave of strong buy-side pressure, which has allowed BTC to surmount $24,000 for the first time today.
Where the entire market trends in the mid-term will depend largely on whether or not BTC can find any strong support around $24,000, as bulls and bears are currently battling for control of this level.
One trader is noting that the crypto could see a sharp breakdown after clearing the liquidity at its recent highs.
Bitcoin Rallies Higher as Market-Wide Uptrend Continues
At the time of writing, Bitcoin is trading up just over 3% at its current price of $23,850. This marks a notable rise from its recent lows of $22,800 set just a matter of hours ago.
Where it trends in the mid-term should depend largely on whether or not BTC can gain a solid foothold above $24,000.
So far, it does not appear that bulls have enough strength to do this, as it rallied as high as $24,200 before facing a strong rejection.
Trader Claims BTC is Likely to Face Intense Selling Pressure
One analyst explained in a recent tweet that there’s a strong possibility Bitcoin plunges lower in the days ahead, with the cryptocurrency clearing out a key liquidity region with its latest rally past $24,000.
“Bitcoin: Could see another pop higher into the red zone. This is where I’d be trailing stops on my longs if I were in one. Should pop up quickly. Could break down quickly after though. Otherwise we see buyers come up higher to clear through resistance and we fly.”
Image Courtesy of NebraskanGooner. Source: BTCUSD on TradingView.
Unless Bitcoin can flip this level into a base of support, there’s a strong possibility that it will consolidate or see some near-term weakness.
Featured image from Unsplash. Charts from TradingView.