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Bitcoin Rebounds Off of Key Support Level as Analysts Eye Upside

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  • Bitcoin saw a sharp overnight decline that came about following a period of immense strength
  • This sent the token reeling down to the $18,000 level, which has long been strong support for the cryptocurrency
  • Where it trends next will depend largely on whether or not it can continue holding above the support it has found at this key price level
  • One trader is pointing to just how aggressively this dip was bought, which indicates that it may be positioned to see significantly further near-term upside
  • Where it trends in the days and weeks ahead will depend largely on its upcoming weekly candle close

Bitcoin has been flashing some signs of immense strength throughout the past few days and weeks, with buyers trying to take control of its price action as bears show their first signs of vitality seen in weeks.

The coming few days should provide some serious insights into where the entire market will trend next.

One trader is now noting that the cryptocurrency’s reaction to this selloff indicates that a long-term price floor is being created.

He believes that this will allow it to rebound and continue its ascent, with the first wave of overzealous buyers getting “wrecked.”

Bitcoin Sees First Major Selloff Since Reaching $19,000

Throughout the course of Bitcoin’s multi-month uptrend, the cryptocurrency has been showing some immense signs of strength, only witnessing a few fleeting selloffs that were followed by upside.

This latest dip doesn’t appear to be an exception to this trend, as BTC’s price reeled as low as $17,650 before facing a “V-shaped” recovery that led to it seeing significantly further upside.

It is now in the process of clawing back the gains that were lost due to this dip, and it may be positioned to see further upside in the near-term.

Analyst Claims BTC has Made a New Price Floor

One trader explained in a recent tweet that the cryptocurrency’s reaction to this recent selloff indicates that a new price floor has been established, which may allow it to climb significantly higher.

He is now watching for a move higher, noting that the aggressive buying pressure throughout this latest upswing was promising.

“What you want to pay attention to now is how aggressively this dip is bought. I think the floor gets established passively. First overzealous buyers get wrecked. Here is a sign of that.”

How Bitcoin trends tonight should provide insight into where Bitcoin will move throughout the week ahead, as its weekly candle close is just a handful of hours away.

Featured image from Unsplash.
Price action from TradingView.





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Bitcoin

Bitcoin Continues Plowing Higher as Uptrend Shows Few Signs of Slowing

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  • Bitcoin has been pushing higher throughout the past few days and weeks, with sellers being wholly unable to gain any ground against bulls
  • This comes as BTC pushes past $19,000, which has long been a strong resistance level that has sparked multiple fleeting selloffs
  • Now that it is firmly above this level, it may be well-positioned to see significantly further upwards momentum in the near-term
  • One analyst is noting that its failure to break below any key support levels throughout the course of its uptrend suggests that further upside is imminent

Bitcoin and the entire crypto market are looking strong by the day, with Bitcoin taking full control of the aggregated market’s trend as analysts eye further near-term upside.

The selling pressure seen as of late has all been absorbed, with each dip only lasting for a brief amount of time.

This trend is common in bull markets and could indicate that a move past the cryptocurrency’s all-time highs is imminent in the days and weeks ahead.

One trader observed in a recent tweet that the lack of any support breaks indicates that there is no reason to suspect any imminent downturn just yet.

Bitcoin Continues Plowing Higher as Bulls Take Aim at All-Time Highs

At the time of writing, Bitcoin is trading up just under 6% at its current price of $19,420. This marks the highest price levels seen by the cryptocurrency since the peak of its 2017 uptrend.

It is now just a few hundred dollars away from setting fresh all-time highs. Although there may be some serious resistance at this price level, a break above it could send it into price discovery mode.

Where the market trends in the mid-term will depend largely on whether or not it can continue holding above the key $19,000 price level in the near-term.

BTC Defends Key Support Levels as Uptrend Persists

One trader is noting that Bitcoin has yet to break below any of its key support levels throughout the course of its multi-week uptrend.

This means that there’s a strong chance it will continue pushing higher in the mid-term.

“BTC update: Nothing has changed, we’ve not yet lost any support. The recent consolidation in the last few days is a pretty neat new invalidation now, quite a bit higher than the last one. Switch gears once one fails.”

Image Courtesy of DonAlt. Source: BTCUSD on TradingView.

So long as Bitcoin continues holding above its key support levels, there’s a strong possibility that it will set fresh all-time highs in the near-term.

Featured image from Unsplash.
Charts from TradingView.



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Google Trends shows ‘Bitcoin’ searches at 2020 high as BTC tops $19.4K

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Today Bitcoin (BTC) price extended its rally toward a new all-time high as the price surged to $19,412 in the morning trading session. 

Daily cryptocurrency market performance. Source: Coin360

Determining the actual all-time high for BTC is somewhat debatable as various exchanges have different figures listed. For example, Coinbase has registered $19,892 as Bitcoin’s peak, whereas BitMEX and Binance have $19,891 and $19,799 respectively. Thus, for most traders, $20,000 is likely to be the primary focal point that will solidify BTC reaching a new all-time high.

Pushing through the $19,000 level occurred quicker than many expected, especially after Bitcoin price plummeted to $18,000 in the evening hours on Nov. 23. This drop was nearly in tandem with XRP’s 30% drop at Coinbase after the altcoin pumped to $0.92.

Bitcoin price and sentiment chart (hourly). Source: TheTIE

Data from TheTie, a social analytics data platform, shows that as Bitcoin price lost momentum on Nov. 22 and Nov. 23, trading sentiment took a noticeable hit when traders anticipated a possible retest of lower supports in the sub-$18,000 zone.

Bitcoin price vs daily sentiment score. Source: TheTIE

According to Joshua Frank, the founder at TheTIE:

“The daily sentiment score looks at how positive or negative investors have been over the last 24 hours versus a rolling 20-day window. This metric (daily sentiment) has been positive (above 50) since Nov. 16 when Bitcoin was near $16K. For the daily sentiment score to remain positive, that means that conversations must continually get more and more positive. So if investors are positive over the last 20 days, they must be even more positive over the last 24 hours for the score to stay above 50.”

This suggests that regardless of strong pullbacks to say $18,000 or below, the majority of people investing in or tracking Bitcoin price still feel overwhelmingly bullish about the digital asset’s prospects when compared to historical price and sentiment data.

Google search for Bitcoin reaches a 2020 high. Source: Google Trends

Google Trends data also shows that searches for the term ‘Bitcoin’ also reached a 2020 high today as the price rallied above $19,000 but the figure is nowhere near the high seen in December 2017.

What’s next for Bitcoin price?

BTC/USDT 4-hour chart. Source: TradingView

As shown on the 4-hour chart, Bitcoin’s flushout to $18,000 created a double bottom right at the key support, and bulls stepped in to buy the dip with 3 successive high volume spikes.

At the time of writing the price has already pulled back to restest the lower support at $18,900 and if this level fails to hold then the next support is at $18,650 which is slightly above the 20-MA and a high volume node on the VPVR.

Similar to the move up to $18,000, a period of consolidation and support building is normal and healthy for sustaining momentum in an uptrend.

According to Matt Blom, the head of global sales trading at EQUOS:

“Bitcoin is focusing on claiming a new all-time high and it seems highly unlikely that having come this close, it fails to break the 2017 record. With a dearth of resistance levels overhead, thoughts turn to the next key upside target. Using Fibonnaci retracements levels, we see $29,100 as the goal, with a 1.618 move from $4,644 to $19,447 price points as our basis.”