Bitcoin’s bulls once again attempted to spark a rally today that led the crypto as high as $7,600 before it faced another strong and swift rejection that led it back down to the $7,300 region. It is important to note that this marks the most recent of multiple unsuccessful attempts that bulls have made to spark upwards momentum for the cryptocurrency.
Analysts, however, are still bullish on Bitcoin in spite of today’s rejection, but bulls have further work ahead of them if they want to flip the trend back into their favor.
Bitcoin Incurs Strong Rejection, But the Bull Case Shouldn’t Be Counted Out Yet
At the time of writing, Bitcoin is trading up 1.4% at its current price of $7,440, which marks a notable decline from its daily highs of $7,600 that were set at the peak of its rally earlier today.
Shortly after tapping these highs, Bitcoin was met with major selling pressure that sparked the ongoing rejection that sent it as low as $7,300 before it found some support.
It is important to note that BTC is currently trading off its daily lows of just under $7,300, but bull’s inability to maintain any upwards momentum over the past couple of weeks points to the possibility that the crypto will see significantly further downside in the near-term.
Cantering Clark, a popular cryptocurrency analyst on Twitter, recently spoke about Bitcoin’s fleeting rally, explaining that he wants to see more organic buying pressure and less upwards momentum that is sparked by short liquidations before he gets too bullish on the crypto.
“Heavy buying activity indicated by the imbalances toward the top of the range. Want to see imbalances not just due to short liquidations, i.e. show me organic initiative buying. If we can hold above MVAH and absorb the heavy selling I can get semi-bullish,” he explained.
Heavy buying activity indicated by the imbalances toward the top of the range.
Want to see imbalances not just due to short liquidations, i.e. show me organic initiative buying.
If we can hold above MVAH and absorb the heavy selling I can get semi-bullish.
$BTC pic.twitter.com/x6tmlIvtnR— Ryan 🐎 Cantering Clark (@CanteringClark) December 29, 2019
Mayne, another popular cryptocurrency analyst, explained that he believes BTC may be poised for a decent sized bounce in the near-term, but that the macro downtrend remains firm until it breaks above $8,600 and flips this resistance level into support.
“This area looks good for at least a decent bounce for $BTC. Not trying to call bottom but there is a lot of confluent HTF support down here and a lot of cocky bear targets. Downtrend til proven otherwise, $8600 flip full bull IMO, but I like being long-biased here,” he noted while referencing the collection of charts below.
This area looks good for at least a decent bounce for $BTC. Not trying to call bottom but there is a lot of confluent HTF support down here and a lot of cocky bear targets.
Downtrend til proven otherwise, $8600 flip full bull IMO, but I like being long-biased here. pic.twitter.com/rUO2uAHHIW
— Mayne (@Tradermayne) December 29, 2019
How Bitcoin responds to its recent rejection over the next few days and weeks could offer significant insight into where the crypto will head throughout the early part of 2020.