Bitcoin Reaches a Juncture as Bulls Try to Thwart Selloff to $17,000

Bitcoin has been exposed to immense volatility in the past few days and weeks. Sellers have stepped up and tried to weaken the strength of the cryptocurrency as it is below the key level of $ 19,000.

Continued trading below this level will certainly affect its technical strength. Still, the intensity of any sell-off after rejection seems to decrease at its all-time high.

This means that the cryptocurrency is technically getting stronger as the series of higher lows that have formed in the period since slipping to $ 16,400 last week is an incredibly positive sign for the cryptocurrency.

Where there are medium term trends may depend largely on whether bulls can keep their price within a key channel that has been formed in the past few days.

A trader searches the boundaries of this channel for information on where it could move in the short term and notes that a break below its lower bound of around $ 18,500 could result in a significant decline in the coming days.

For now, however, the cryptocurrency remains above this key support and cops are passionately trying to bring it above $ 19,000.

Bitcoin shows signs of strength as bulls hit higher lows

A promising trend seen over the past week is the formation of higher lows after each rejection at the all-time highs for cryptocurrency in the region between $ 19,000 and $ 19,000.

After visiting this level for the first time last week, the price of the cryptocurrency fell to $ 16,400 before finding support and rebounding. A rejection and decline followed the second attempt to break its highs to lows of $ 18,200.

If this trend continues, it is a sign that bears are losing control of these levels and may indicate that a breakout into the $ 20,000 region is imminent.

Trader claims moving towards $ 17,000 could take place soon

A dealer explained In a recent tweet, an interruption under a channel Bitcoin is currently trapped in could cause it to fall towards $ 17,000.

He pointed out this pattern on a chart, showing that a break below the middle of the $ 18,000 region would open the gates to significantly lower movement.

“BTC: See if the channel holds or not. Either way, I want to play the range from the lows by 17 for a jump. “

Image Courtesy of TraderXO. Source: BTCUSD on TradingView.

The coming days should provide some insight into whether this bearish possibility is materializing.

Featured image from Unsplash.
Charts from TradingView.