Bitcoin Reaches Multiple Key Resistance Levels; Will They Spark a Selloff?

Bitcoin has been leading the crypto market higher throughout the past few days, with its recent break out of its consolidation phase, acting as a launchpad for the entire market.

This trend has come to an end today, however, as BTC’s latest rally has sucked the air out of altcoins, causing many of them to post major losses as the benchmark cryptocurrency rallies higher.

How BTC trends in the coming few days should provide some serious insights into how long this trend will persist.

One trader is noting that he expects Bitcoin’s momentum to slow down in the near-term, as it has now reached multiple heavy resistance levels.

Bitcoin Pushes Towards $12,000 in Unexpected Overnight Movement 

At the time of writing, Bitcoin is trading up over 1% at its current price of $11,880.

The cryptocurrency’s latest move higher came about rather unexpectedly and appears to have been fueled by an exodus away from altcoins.

Many investors are growing fearful that BTC will continue climbing at the expense of smaller beta assets. However, it is still a strong possibility that today’s move is simply an outlier and not emblematic of a new trend.

Analyst: BTC Reaches Multiple Key Resistance Levels Following Upsurge 

One analyst said that Bitcoin is likely to slow its ascent here, as it has now reached multiple key resistance levels.

He notes that he will either wait for a retrace, or a break above these levels, before adding to his positions.

“Took some profits on BTC at diagonal and horizontal resistance. Looking to add some back lower or on a close above diag/horizontal,” he said while pointing to the below chart.

Image Courtesy of Pentoshi. Source: BTCUSD on TradingView.

How Bitcoin trends throughout the coming day and coming week should offer altcoin investors serious insights into the market’s outlook.

Featured image from Unsplash.
Charts from TradingView.
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