Bitcoin Reclaims Key Level Following Yesterday’s Wild “Pump and Dump”

Bitcoin

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.
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