23. November 2020
Bitcoin rejected at critical support level – but analysts remain bullish
- Bitcoin experienced a sharp decline overnight, which occurred after a period of immense strength.
This took BTC to $18,000, which has long been a strong support for the crypto-currency.
- Where Bitcoin goes next will depend largely on whether it can hold above the support that exists at this important price level.
- One trader points out how aggressively this bearish move was bought – suggesting that Bitcoin may be able to see much more upside potential in the near future.
Bitcoin has shown some signs of immense strength in recent days and weeks, with buyers trying to take by Crypto Investor control of price action as the bears have been showing the first signs of vitality for weeks.
The coming days should provide some serious insight into where the market as a whole is headed next.
One trader is now noting that the crypto currency’s reaction to this sell-off suggests that a long-term price floor is being created.
He believes that this will allow BTC to recover and continue its rise, „undoing“ the first wave of over-eager buyers.
Bitcoin experiences its first major sell-off, reaching $19,000
Over the course of Bitcoin’s several-month uptrend, the crypto currency has shown some immense signs of strength and has experienced only fleeting sell-offs, each followed by an upward trend.
This recent slump does not appear to be an exception to this trend – the BTC price climbed to $17,650 before facing a „V-shaped“ recovery, which resulted in a significant further uptrend.
The asset is now in the process of recovering the gains lost as a result of this decline. And BTC may be able to make further gains in the near future.
Analyst: Bitcoin has reached a new price floor
A trader writes in a tweet: The reaction of the crypto-currency to this latest sell-off indicates that a new price floor has been reached which could allow BTC to rise significantly higher.
He now observes an upward movement and comments that the aggressive buying pressure during this recent rally was promising.
„What you should be looking at now is how aggressively this dip is being bought. I think the floor is passively asserting itself. First, overzealous buyers are ruined. This is a sign of that.“
The trends of the next few hours should give an insight into how Bitcoin and the aggregated crypto markets will behave this week.