Bitcoin and the aggregated crypto markets have had a bullish start to 2020, with BTC surging from its recent lows of $6,800 that were set when bulls attempted to spark a sharp sell off earlier this week.
Buyer’s ability to absorb the immense selling pressure that was behind this movement is certainly a bullish sign, although analysts are now noting that how the crypto is currently responding to a key resistance level could spell trouble for what’s to come next.
Bitcoin Remains in Short-Term Uptrend as Bulls Push it To Key Resistance Level
At the time of writing, Bitcoin is trading just under 3% at its current price of $7,500, which marks a notable climb from its daily lows of $7,300 that were set yesterday.
Bitcoin’s ability to continue climbing higher in the time since its recent drop to the upper-$6,000 region is certainly a good sign for bulls, although the crypto has been struggling to push above the $7,500 region over the past day, which could signal that it is an insurmountable resistance level.
Teddy, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes the cryptocurrency will once again retrace its recent gains and drop back towards $7,300, which is currently a support level that could continue holding strong in the near-term.
“#BITCOIN | $BTC There are two type of people: FOMO BUYERS: Buys the breakout’s the top in hope that if pumps even further – LOL its not 2017 buddy. BORING BUYERS: Waits for a retrace to previous resistance for confirmation of support – Every retest so far failed on 4h,” he said while pointing to the chart below.
#BITCOIN | $BTC
There are two type of people
FOMO BUYERS: Buys the breakout's the top in hope that if pumps even further – LOL its not 2017 buddy
BORING BUYERS: Waits for a retrace to previous resistance for confirmation of support
Every retest so far failed on 4h pic.twitter.com/KRNwyxiyuP
— TEDDY (@teddycleps) January 5, 2020
Rejection At $7,600 Could Spark Another Large BTC Sell-Off
Although Bitcoin is currently pushing up against its next key resistance level, it is possible that it will climb slightly higher until it reaches $7,600, which could be where enough selling pressure exists to spark a sell off that leads the crypto as low as $7,200.
Livercoin, another popular crypto analyst, spoke about this in a tweet, in which he points to a chart that shows the levels referenced above.
“Considering it’s Sunday and we’ll have a decent gap to fill once CME opens, I wouldn’t be surprised to see something like this,” he noted.
Considering it's Sunday and we'll have a decent gap to fill once CME opens, I wouldn't be surprised to see something like this. $BTC #Crypto pic.twitter.com/vsiwc8XqU4
— Livercoin (@livercoin) January 5, 2020
It remains unclear as to whether or not the support that exists within the lower-$7,000 region will be enough to stop Bitcoin from dropping back towards $6,800, but it is clear that another rejection around BTC’s current price levels will mean that the crypto will remain range bound for the foreseeable future.
Featured image from Shutterstock. The post appeared first on NewsBTC.