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

Bitcoin
BUY LIGHTCHAIN AI ($LCAI) BEFORE TOKEN LAUNCHES

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.
SIGN UP FOR LIGHTCHAIN 2025 - BUY NOW
Exit mobile version