According to an analyst, Bitcoin is running up against key resistance level and finally recovered from last week lows of $16,200 region. Over the past 48 hours, the coin surged from $17,000 region to $18,500 which is the highest level the coin traded in many days so let’s read more in today’s BTC news.
Analysts have mixed feelings about what happens next with BTC as some think that the rally will prepare the coin for higher highs. Others think that the coin will reverse into lower regions as it faces down a key resistance level. One trader noted that the cryptocurrency is running up against a key resistance region which could trigger further losses. The analyst, Tyler D Coates, shared a chart seen below on November 29th and it shows that after bouncing off the support in the $16,500 region, it is facing down a macro resistance level in the $19,000 region. This region is close to where BTC topped the 2017 bull market and made it a very important level for so many traders.
The chart shared by a number of analysts shows a bearish movement and it focused on technical trends. A historically accurate analyst who predicted in 2018 that BTC will drop to $3,200 to bottom said recently:
“you love to see it, looking for another pop higher into 18k before opening some shorts. to me this is a clear abc up after a 5 wave decline, and complacency looks to be kicking in.”
He made the comments referencing the charts seen below that suggest that BTC is in the middle of trading in the bearish Elliot Wave Correction which could take it to $15,000. Many are still sure that the fundamentals of the space are strong despite the strong correction and commenting on the recent drop, BTC on-chain analyst Willy Woo commented:
“Margin longs will be spanked until they go short. Was bullishness was way overheated. Exchange flows are neutral; spot sellers are matched with buyers. Fundamentals a great. The next few weeks? A great time to scoop cheap coins for 2021.”
As Bitcoin is running up against a key resistance level, many believe that with the entrance of institutional players, BTC will move higher over time, based on the belief that the demand will outweigh natural selling pressure on miners and sellers.
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