Bitcoin has seen a sharp surge over the past day, with the bulls aiming to reverse the recent market-wide sell-off as the cryptocurrency begins to rise.
Where to go next will likely depend largely on whether or not bulls can sustain the sustained uptrend as the weekly candle approaches quickly. Where that candle closes will likely set the tone for the week ahead and provide insight into its macro outlook.
There are still a few critical levels that must be overcome before Bitcoin can see a significant upward trend.
It is currently trading between a few key levels and how it continues to respond to selling pressures here will provide some insight into its medium-term outlook.
A trader is now realizing that a break above resistance, which is just above what it is currently trading at, could lay the foundation for the benchmark cryptocurrency to see an explosive spike anytime soon.
However, a rejection here could slow its growth and resume the downtrend that came after a rejection of its all-time highs in the middle of the $ 19,000 region.
Bitcoin struggles to gain momentum when selling pressures rise
At the time of writing, Bitcoin is trading just under 4% from its current price of $ 17,750. This is a remarkable increase from recent lows of $ 16,400 at the end of the recent market-wide sell-off.
It also marks a remarkable rebound from where it was trading the previous day, with the bulls previously struggling to break above $ 17,000.
If it can stay above that level and potentially navigate into the $ 18,000 region, it could be a sign that another uptrend is imminent for the entire market.
Analysts claim that the current price region is crucial for the future outlook
A dealer explained In a recent tweet, Bitcoin’s response to its current price region will provide important insights into the short-term trend.
He points to the $ 17,650-17,800 price range that is currently trading as a “sticky area” that could slow the rise. So far this has been proven correct.
“BTC: Bitcoin is testing USD 17,160 here again and I want this level to overturn the upward trend. The next sticky range is between $ 17,650 and $ 17,800, which was supported before the collapse. Reclaim there and I think that’s a good start for the price as it should probably go up to mid-$ 18,000. “
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
Unless Bitcoin faces a tough rejection of its current price level, there is a strong possibility that another upward trend is imminent in the short term.
Featured image from Unsplash. Charts from TradingView.