Bitcoin has seen some brutal worth motion all through the morning, with overleveraged lengthy positions being shaken out with a short dip all the way down to $15,700, whereas these panic shorting had been then liquidated by a pointy rebound.
This worth motion has allowed the cryptocurrency to start inching increased and transferring to retest its $16,000 assist stage, which might as soon as once more act as slight resistance.
This stage has been performing as assist for the previous few days, however a continued bout of buying and selling beneath it might strike a heavy blow to bulls.
BTC’s latest worth motion seen all through the previous few days and weeks has led to the formation of a parabolic trendline, elucidating the overwhelming management that patrons have had over the benchmark cryptocurrency’s worth motion as of late.
Nonetheless, this trendline is now being examined, and whether or not or not patrons can defend it ought to present some severe insights into the cryptocurrency’s near-term outlook.
A break beneath this stage might affirm its latest $16,500 highs as a long-term prime.
Bitcoin Reels Under $16,000 as Promoting Strain Mounts
Following a bout of stability above $16,000, Bitcoin has confronted some sudden inflows of promoting stress which have brought on it to plunge beneath this key stage.
This comes simply in the future earlier than the cryptocurrency closes its subsequent weekly candle, which will likely be important for gaining insights into its mid-term outlook.
If it closes beneath $16,000, it may very well be a grim signal that signifies $16,500 will likely be an area prime. A detailed above this stage, nonetheless, might assist ship it flying considerably increased.
Whereas BTC’s momentum stalls, altcoins are literally seeing some immense power. This pattern could persist as long as BTC consolidates and doesn’t see any immense decline.
BTC Assessments Parabolic Trendline as Bears Attempt to Break Uptrend
For the time being, Bitcoin is testing a key parabolic trendline that has been shaped and revered all through the previous few months.
A break beneath this trendline might mark an finish to the extreme features that the cryptocurrency has been seeing as of late.
One dealer spoke about this in a recent tweet, questioning whether or not or not the parabola will survive.
“BTC: Can the parabola survive?” He concisely requested whereas pointing to the beneath chart.
Picture Courtesy of Josh Olszewicz. Supply: BTCUSD on TradingView.
Tomorrow’s weekly candle shut ought to present larger insights into the place the cryptocurrency will pattern subsequent.
Featured picture from Unsplash. Charts from TradingView.