Bitcoin is Nearing Key Resistance as Market Posts Massive Rebound
- Bitcoin has seen some immense volatility as of late, with bulls reversing its recent losses entirely overnight as they regain control of the crypto
- This price action confirms that the latest selloff was one that is quite common during bull markets when the crypto retraces 30-40% before continuing its ascent
- BTC’s strength is creating tailwinds for the entire market, as ETH and most other major altcoins have also surged higher
- One trader is now noting that he is flat on Bitcoin, for the time being, cautioning that the resistance around $40,000 could be quite significant and cause it to see a notable pullback
- Once it can break above this level, however, the crypto could see some massive upwards momentum that leads it to new highs
Bitcoin and the entire cryptocurrency market have exploded higher today, with bulls taking full control of the market as they look to reverse the recent downtrend.
This market-wide strength shows few signs of slowing despite the resistance that Bitcoin is facing within the lower-$40,000 region.
The longer it consolidated below this level, the better poised it may be to post a breakout rally that sends it flying past here.
One trader explained that he is now watching for a break above $40,000 before he flips long on the cryptocurrency. He notes that this is a crucial level, and any strong rejection could lead to significantly further downside.
Bitcoin Explodes to $40,000 as Uptrend Resumes
At the time of writing, Bitcoin is trading up just over 5% at its current price of $39,400. This marks a notable surge from its recent lows of $30,000 set just a few days ago during a market-wide selloff.
Where the entire market trends next will undoubtedly depend on whether or not bulls can maintain their present momentum, as use it to shatter the $40,000 resistance level.
Analyst Claims BTC Still at Risk of Seeing Downside Until $40,000 is Flipped to Support
While sharing his thoughts on where Bitcoin might trend in the short-term, one analyst explained that he is closely watching to see its reaction to $40,000.
“Nice pop out of the ascending triangle for $BTC. I’m flat as we approach this horizontal resistance zone. I’d be surprised if we blow through to new highs on the first attempt, but BTC has surprised me plenty of times before.”
Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.
The coming few days should provide insights into Bitcoin’s strength as it pushes against a crucial resistance level.
Featured image from Unsplash. Charts from TradingView.
Source: Read Full Article