Bitcoin’s buyers and sellers have remained in gridlock as the cryptocurrency fails to establish a near-term trend on the heels of its recent rally to highs of $8,400. The crypto now appears to be trading squarely between strong support and resistance.
Analysts are widely noting that in spite of this consolidation phase, the crypto’s mid-term uptrend is still likely to extend further, and a break above a key resistance region that exists around Bitcoin’s current price could lead to a massive upwards price movement.
Bitcoin Consolidates as Analysts Watch for Further Upside; Here’s the Levels to Watch
Currently, Bitcoin is trading down marginally at its current price of $8,150, which around the level it has been trading at for the past couple of days.
At the peak of the rally incurred last week, Bitcoin was able to tap highs of $8,400 before plummeting lower. This past weekend, bulls attempted to push BTC back to this key price region, leading the crypto as high as $8,300 before it once again faced a strong and swift rejection.
In spite of these multiple rejections, buyers have been able to absorb enough of the selling pressure to hold the crypto above its key support levels, which sit at $8,000 and $7,700 respectively.
Mayne, a popular cryptocurrency analyst on Twitter, spoke about the levels Bitcoin needs to break above in the near-term, noting that a decisive movement above the resistance that sits between $8,200 and $8,400 could mean significant upside is imminent.
“$BTC: HTF setups take longer to play out. We broke out of a 45-day range and retested the range high. Not sure why everyone would rush to short this. We could retest the yearly open but I tend to think more people are fighting the trend not going with it. Thru the grey, he said while pointing to the chart below.
HTF setups take longer to play out. We broke out of a 45-day range and retested the range high. Not sure why everyone would rush to short this.
We could retest the yearly open but I tend to think more people are fighting the trend not going with it.
Thru the grey 🎉🎉 pic.twitter.com/zYflHFMQ2O
— Mayne (@Tradermayne) January 13, 2020
Cantering Clark, another popular crypto analyst, shared a similar sentiment to Mayne, explaining in a tweet that he believes the recent price action favors longs.
“It should be noted, there is no reason right now to be heavily favoring shorts from where we sit. HTF has broken out of a well defined range and had a successful retest. IMHO, as far as initial targets, the long has greater potential,” he explained.
It should be noted, there is no reason right now to be heavily favoring shorts from where we sit.
HTF has broken out of a well defined range and had a successful retest.
IMHO, as far as initial targets, the long has greater potential. $BTC pic.twitter.com/R1WARwP9PP
— Ryan 🐎 Cantering Clark (@CanteringClark) January 13, 2020
The coming several days and weeks should offer insight into whether or not the resistance that lies around Bitcoin’s current price levels will be insurmountable.