Bitcoin is rapidly approaching a long-viewed overhead resistance level formed over time following the recent rejection at its $ 19,500 all-time highs.
The selling pressure here turned out to be quite significant, causing the cryptocurrency to see a sharp decline leading to lows of USD 16,400.
This move was perpetuated by several factors, including fears of a possible wave of regulation stemming from comments from US Treasury Secretary Steven Mnuchin.
Where medium-term market trends depend almost entirely on Bitcoin, while the recent $ 19,000 rejection stopped the recent signs of life among altcoins and caused the overall market to decline significantly.
There is a high probability that the ongoing recovery will continue as bulls are eager to post a “V-shaped” recovery while erasing recent losses.
As for what traders expect after that, someone said he is taking some money off the table as crypto navigates up to its overhead resistance level in the lower to mid $ 18,000 region.
He notes that a break above USD 18,400 could be enough to invalidate any signs of weakness plaguing the price.
Bitcoin is breaking USD 18,000 as the rebound continues
At the moment of writing, Bitcoin is trading just under 2% at the current price of $ 18,090. This marks a notable rise from the recent lows of $ 16,400, which were at the low end of the recent market-wide meltdown.
This dive came about on the heels of the cryptocurrency’s visit to the mid $ 19,000 region. There was considerable sales pressure within this region.
If it can gain a firm foothold in the mid $ 18,000 region, it could see significantly higher returns in the near term.
BTC may struggle to break through its aboveground resistance, trader claims
A merchant stated that Bitcoin may not break through the resistance that has prevailed in the USD 18,000 region.
He adds that a solid break above $ 18,400 could cause the cryptocurrency to continue its ongoing recovery.
“Half of the long closed at $ 18,080 ~ I hope not to be overexposed in resistance coming into the weekly m / monthly closings. Many opportunities to buy if we break $ 18.4 ~ Not many opportunities if we don’t. “
As Bitcoin’s weekly candle closes quick approaches, how it’s doing in the coming hours, should give serious insights into the outlook for the rest of 2020.
A close above $ 18,000 will greatly bolster its outlook and open the gates for bulls to take control of the price action in the coming week.
Featured image from Unsplash. Charts from TradingView.