Bitcoin has seen a strong move higher throughout the past day, with bulls aiming at reversing the recent market-wide selloff as the cryptocurrency begins pushing higher.
Where it trends next will likely depend largely on whether or not bulls can maintain the ongoing uptrend as the weekly candle close fast approaches. Where this candle closes will likely set the tone for the week ahead and offer insight into its macro-outlook.
There are still a few crucial levels that need to be surmounted before Bitcoin can see significantly further upside.
It is currently trading between a few key levels, and how it continues reacting to the selling pressure that exists here will provide insight into its mid-term outlook.
One trader is now noting that a break above the resistance that sits right above where it is currently trading at could lay the groundwork for the benchmark cryptocurrency to see an explosive move higher shortly.
A rejection here, however, could stunt its growth and cause it to resume the downtrend that came about after it faced a rejection around its all-time highs in the mid-$19,000 region.
Bitcoin Struggles to Gain Momentum as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading up just under 4% at its current price of $17,750. This marks a notable climb from its recent lows of $16,400 set at the bottom of the recent market-wide selloff.
It also marks a notable upswing from where it has been trading throughout the past day, with bulls previously struggling to break above $17,000.
If it can hold above this level and possibly navigate into the $18,000 region, it could be a sign that further upside is imminent for the entire market.
Analyst Claims Current Price Region is Critical for Future Outlook
One trader explained in a recent tweet that Bitcoin’s response to its current price region will offer important insights into its near-term trend.
He points to the price region between $17,650 and $17,800 – which is where it is currently trading – as a “sticky area” that may slow its ascent. So far this has proven to be accurate.
“BTC: Bitcoin retesting $17,160 here and I want to see this level flip the move up. Next sticky area is around $17,650 to $17,800 which was previous support prior to the breakdown. Reclaim there and I think that’s a nice start for the price as it should likely move to mid $18ks.”
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
Unless Bitcoin faces a harsh rejection around its current price levels, there’s a strong possibility that further upside is imminent in the near-term.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on November 28, 2020 at 11:45PM
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