Bitcoin has seen brutal price moves all morning, shuffling overloaded long positions with a short dip to $ 15,700, then lifted that panic discount by a sharp rebound.
This price action allowed the cryptocurrency to keep moving higher and retest the USD 16,000 support level, which could again act as a slight resistance.
This level has served as a support for the past few days, but a sustained attack below the level could deal a heavy blow to the bulls.
BTC’s recent price action seen in recent days and weeks has led to the formation of a parabolic trendline, clarifying the overwhelming control that buyers have had over the benchmark cryptocurrency’s price action of late.
However, this trendline is now being tested and whether or not buyers can defend it should provide serious insights into the cryptocurrency’s near-term outlook.
A break below this level could confirm its recent high of $ 16,500 as a long-term top.
Bitcoin rolls below USD 16,000 as selling pressure mounts
After a stability period of more than $ 16,000, Bitcoin has experienced a sudden influx of selling pressure that has brought it below this important level.
This comes just a day before the cryptocurrency closes its next weekly candle, which will be vital to understanding its medium-term outlook.
If it closes below $ 16,000, it could be a grim sign indicating that $ 16,500 will be a local high. However, a close above this level can make it fly significantly higher.
As BTC’s momentum diminishes, altcoins are actually showing tremendous strength. This trend can continue as long as BTC consolidates and doesn’t see an immense decline.
BTC tests parabolic trendline while bears try to break the uptrend
Right now, Bitcoin is testing a major parabolic trendline that has been formed and respected in recent months.
A break below this trend line could put an end to the intense gains the cryptocurrency has seen in recent times.
A trader commented on this a recent tweet, wondering whether or not the parabola will survive.
“BTC: Can the Parabola Survive?” He asked curtly, pointing to the table below.
Image Courtesy of Josh Olszewicz. Source: BTCUSD on TradingView.
Tomorrow’s weekly candlestick should provide more insight into where cryptocurrency will be next trend.
Featured image from Unsplash. Charts from TradingView.