Bitcoin has faced some intense selling pressure following its recent $ 24,000 rally, but bulls were able to thwart it to see an intense sell-off as the price navigates back to this important level.
BTC’s continued response at this level should give buyers some serious insights into where it can set the next trend. A sustained period of trading below this level may reveal a slight weakness among buyers.
On the other hand, a shift from this level to support could significantly amplify the cryptocurrency’s price action and allow for some serious upward movement.
Growing buzz underneath retailers may be enough to take it a step further, with prominent public figures such as Elon Musk and others promoting Bitcoin on social media.
A trader still believes there is a strong possibility that BTC will eventually retest its critical tech support, which is currently around $ 19,575.
He notes that unless this level is broken below – which is not something he expects to happen – there is a high probability that his macro bull run will continue to roar.
Bitcoin is showing signs of strength as buyers absorb yesterday’s sell-off
At the moment of writing, Bitcoin trades marginally at the cryptocurrency’s current price of $ 23,750. This is where it has been trading for the past few days.
It recently rose to $ 24,200 before discovering serious selling pressure that put pressure on the price and caused it to drop to lows of $ 23,000.
It was able to find some strong support here that has since fueled more buoyancy. USD 24,000 remains a strong resistance level, and whether it can break above it or not should give the market some serious insights as to where it will be the next trend.
BTC will remain bullish as long as it trades above USD 19,575
A trader explained in a recent tweet that Bitcoin’s price action is tightly controlled as long as the cryptocurrency is above $ 19,575.
He notes that while a test of this level is unlikely, it could come about due to its technical significance.
From a technical perspective, BTC supports an area of $ 19’575. See, I make the stupid bias mismatched rules, this is the support I hate too. It probably won’t hit. But this means that unless we lose the area that I am bullish AF and shorting is illegal, ”he said pointing to the chart below.
Image Courtesy of SalsaTekila. Source: BTCUSD on TradingView.
The next few days should provide some insight into where the whole market will be next trend. As long as the cryptocurrency stays above this important price region, the bulls will remain in control.
Featured image from Unsplash. Charts from TradingView.