- Bitcoin has seen some wild price action throughout the past few days, with the crypto seeing a “pump and dump” rally that led it to $39,000 before it plummeted to $32,000
- This price action shows that there’s a significant number of bears looking to fade BTC’s price action at the moment
- It has recovered from its lows and is not showing any signs of wanting to collapse much lower, but its price action has been heavy as of late
- One trader explained that he is now watching for BTC’s reaction to $34,000 throughout the day
- It is critical that the crypto firmly reclaims this level and establishes it as support
- Any firm break below it before the daily close could put it in a precarious position
Bitcoin and the entire crypto market have been heavy as of late, with BTC and altcoins alike struggling to gain massive momentum due to the immense selling pressure that bears have been placing on the benchmark crypto.
Where the market trends in the days and weeks ahead should depend largely on whether or not bulls can stop BTC from seeing any intense selloff resulting from the recent rejection at $39,000.
One trader is now watching to see how BTC responds to $34,000, noting that this is a “line in the sand” that needs to hold for bulls to gain any control over its price action.
Bitcoin Struggles to Gain Momentum Following $39,000 Rejection
At the time of writing, Bitcoin is trading down just over 1% at its current price of $33,820. This marks a massive dip from its recent highs of nearly $39,000 set at the peak of the “Elon Musk” candle.
This candle came about shortly after Elon Musk added “#Bitcoin” to his Twitter bio, calling the bio change “inevitable” in a tweet.
$34,000 is a “Line in the Sand” for BTC
One trader explained that $34,000 is the key level to watch in the short-term, as a daily close above or below this level could determine Bitcoin’s near-term fate.
“BTC update: After a volatile day yesterday, it makes sense to revisit the BTC chart. Technically speaking, we’re trading back above resistance. BTC is chopping but that’s honestly the best thing it can do after a run like this. $34k is again the line in the sand & has to hold.”
Image Courtesy of DonAlt. Source: BTCUSD on TradingView.
The coming few days should shine some light on whether or not BTC and the rest of the market will reverse the technical damage done by the recent pump and dump.
Featured image from Unsplash. Charts from TradingView.
