Bitcoin is once again beginning to creep towards its strong resistance level at $4,000 following a relatively involatile trading session over the past couple of days. Although BTC has seen some incredibly bullish momentum over the past few weeks and has firmly established the low-$3,000 region as a strong level of support, its upwards ascent stalled once it was rejected at $4,000.
Now, one analyst claims that breaking decisively above $4,000 in the near-future is critical for Bitcoin, as doing so would break the “lower high bounce” trend that BTC has experienced consistently since reaching $20,000 in late-2017.
At the time of writing, Bitcoin is trading up approximately 1% at its current price of $3,985. Ever since BTC surged to its current price levels from weekly lows of $3,600, it has been pushed down each time it touches $4,000, which signals that a large amount of selling pressure exists at this price level.
It is currently unclear as to whether or not Bitcoin’s bulls will be able to garner enough buying pressure to break through this level, but a failure to do so in the near-future may lead to a large drop.
Chonis Trading, a popular cryptocurrency trader on Twitter, spoke about the importance of breaking above $4,000 in a recent tweet, explaining to his followers that every oversold BTC bounce has been followed by lower highs, but a break above $4k would break this persisting trend.
“$BTC – Since Bitcoin $20k every oversold bounce (1) has been followed up by a lower high bounce (2) that gets rejected right around the .55fib extension of the previous bullish impulsive move. Breaking this trend has #bitcoin closing over $4k otherwise another strong rejection…”
$BTC – Since Bitcoin $20k every oversold bounce (1) has been followed up by a lower high bounce (2) that gets rejected right around the .55fib extension of the previous bullish impulsive move. Breaking this trend has #bitcoin closing over $4k otherwise another strong rejection… pic.twitter.com/9agBo9rxxN
— Chonis Trading (@BigChonis) February 22, 2019
Could Bitcoin’s Sideways Trading be Bullish?
Although Bitcoin’s recent bout of sideways trading has left many traders wondering as to where its price is heading next, one analyst believes that its ability to hold steady and consolidate at its current price levels without being pushed down is a bullish development.
TraderKoz, another popular cryptocurrency trader on Twitter, spoke about this, noting that the bull’s ability to support Bitcoin’s price at its current levels leads him to believe that they will be able to continue pushing its price up.
“The fact that $ETH and $BTC are just consolidating here without being pushed down makes me bullish. You’d think that we’d have a retrace by now but the bulls are holding price up. I’m expecting another push up.”
You’d think that we’d have a retrace by now but the bulls are holding price up. I’m expecting another push up.
— TraderKoz (@TraderKoz) February 22, 2019
As the markets head into the weekend, it is likely that Bitcoin and the general cryptocurrency markets will see increased levels of volatility due to lower-than-typical trading volumes, which may give analysts greater insight as to where the markets are heading next.
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