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Bitcoin Breaks $19,000: Why Analysts are Concerned of a 30%+ Pullback

Bitcoin Breaks $19,000: Why Analysts are Concerned of a 30%+ Pullback

Mainframe AI
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The fact that each dip is met with such aggressive buying pressure signifies that severe upside could be imminent in the near-term.

  • Bitcoin and the Whole cryptocurrency market have been caught in the throes of an intense uptrend during the past few days
  • Bulls have been aggressively propelling the cryptocurrency higher, with BTC currently pushing past its key $19,000 resistance level
  • The selling pressure here has proven to be quite intense, which makes the firm break above this level technically significant
  • If the cryptocurrency can hold over $19,000 for an extended period of time, it could be a sign that upside is imminent for the token
  • One dealer is now noting that there is 1 reason for concern, with one key level possibly acting as a magnate that will spark a 30%+ dip

Bitcoin
It does seem to be fairly steady above this price level, as sellers have to spark any intense selloff.

At the time of writing, Bitcoin is trading up just over 4 percent at its current price of $19,200. This is around where it’s been trading throughout the last few hours.

Although BTC will surely face some resistance around its all-time highs, there’s a strong probability that it will plow through the sell orders here once retail”FOMO” kicks in.

Analyst: BTC Could See a Strong Pullback Before Pushing Higher

“BTC: Something to know about: In 2017, the 200dMA underpinned the whole trend. We haven’t retested it in a while — would not be surprised to see a 30-35% dip in late Dec/early Jan to retest it as service for another leg higher to $21k+.”
The coming few times should provide insight into whether this pullback will occur or if BTC will continue its parabolic progress higher.
1 trader believes that Bitcoin may need to check its 200-day MA before breaking over its all-time highs.

This could mean that a dip as low as $13,000-15,000 could be imminent in the days and weeks ahead.

1 trader is imagining that it may first need to retest one key technical degree before posting any significant rally higher.
Image Courtesy of Nik Patel. Source: BTCUSD on TradingView.

Bitcoin and the aggregated crypto market are in a clear and firm bull market. Sellers have been unable to control its latest trend, with it only facing a couple of fleeting pullbacks.
Featured image from Unsplash.
This may be a positive sign that suggests further upside is imminent, although the selling pressure around its all time highs in the upper-$19,000 region may be what causes it to see a firm rejection.

Released at Tue, 24 Nov 2020 18:00:31 +0000

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