- Bitcoin has been facing some immense selling pressure as of late, with the resistance found within the mid-to-upper $19,000 region proving to be too much for bulls to handle
- Despite seeing another strong rejection here overnight, it is important to note that Bitcoin once again set another higher-high
- This indicates that the cryptocurrency could be on the cusp of seeing another bid at breaking through the resistance it has been struggling with
- The support it is now trying to establish around $19,000 is also incredibly positive, as it indicates that bulls are retaking control
- One analyst, however, is expecting Bitcoin to see some notable near-term downside, noting that until it gains price acceptance over $19,500, he is expecting downside
Bitcoin has been struggling to maintain its multi-month uptrend, with the selling pressure found within the upper-$19,000 region stopping it from seeing any major gains throughout the past few days and weeks.
The selling pressure seen here isn’t surprising, as analysts have long forecasted that bears would try to defend against a break above the cryptocurrency’s all-time highs.
Until it can break above this level, it will likely continue facing prolonged bouts of consolidation. One trader believes that it may also see some serious downside until it can gain a footing above $19,500.
Bitcoin Reclaims $19,000 Following Overnight Selloff
At the time of writing, Bitcoin is trading down just under 2% at its current price of $19,100. This marks a serious climb from its recent lows of $18,700 set at the bottom of the overnight decline.
This decline came about shortly after BTC tapped highs of $19,500. The fact that it has once again set what appears to be a higher-low is incredibly bullish and could indicate that upside is imminent.
Trader Claims BTC’s Downside Potential is Growing as Price Remains Below $19,500
One trader believes that the lack of price acceptance above $19,500 is a grim sign that may indicate downside is imminent.
He spoke about this in a recent tweet, explaining that he expects continued weakness until this level is firmly broken above.
“BTC: Mentioned yesterday that 19.5 was a key level with Monthly Open slightly higher above. No price acceptance above 19.5. Shorted 19.3 ‘s (19.8 on march futures). Covered half here at 18.9. Closing below 18.8 S/R will add further size back on.”
Image Courtesy of TraderXO. Source: BTCUSD on TradingView.
The coming few days should shine a light on Bitcoin’s outlook, as it is currently trading at a pivotal point. Any decline or rise from here could determine its trend throughout early-2021.
Featured image from Unsplash. Charts from TradingView.