Why One Trader is Waiting for $20,000 Before Jumping Back into Bitcoin

Bitcoin

Bitcoin and the entire crypto market are currently inching higher as analysts closely watch to see how BTC reacts to the potential selling pressure within the mid-to-upper $19,000 region.

If Bitcoin faces another strong rejection at this level, then the cryptocurrency will need to set higher-lows than those seen earlier this week, meaning it needs to bottom above $18,200.

As long as it can continue this trend, it will remain firmly in bulls’ grasp.

One trader stated that he is awaiting a test of $20,000 before he enters any new Bitcoin positions, adding that he’d rather lose a few hundred dollars per Bitcoin and have a hedge against a potential rejection.

Bitcoin Nears Key Resistance as Uptrend Continues 

At the time of writing, Bitcoin is trading up just under 1% at its current price of $19,350.

This is just a hair below the mid-to-upper $19,000 region that has sparked multiple strong rejections throughout the past week.

A further rejection here may strike a blow to the cryptocurrency’s strength, but as long as the dip results in another “V-shaped recovery,” it will still be in bulls’ control.

Trader Fears Rejection, Plans to Rebuy BTC at $20,000 

One prominent trader explained that he is awaiting a move towards $20,000 before rebuying his Bitcoin, noting that the risk of a strong rejection in the mid-to-upper $19,000 region is still significant.

“Short hedged my $BTC exposure, locked a price of $19’240. I don’t know what comes next. I want to be in cash until we nibble $20k. I’ll market buy into it and lose 750$ per coin if need be, worth the protection. Not net short, just want to be in cash from here. Still scalping.”

How Bitcoin reacts to a test of this region in the coming hours or days should provide investors and analysts with immense insights into its mid-term outlook.

Featured image from Unsplash.
Price data from TradingView.
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