- Bitcoin has been caught in the throes of an immense bull market over the past few days and weeks
- This has allowed its price to multiple over the past few months, racing from summer/fall lows of $8,600 to highs of $23,700 that were set yesterday morning
- The strength seen by the cryptocurrency comes as its macro-outlook brightens, with institutions and large banks warming to the technology
- Furthermore, there are already some signs of an imminent wave of retail “FOMO” – with some notable musicians and celebrities tweeting and posting about BTC
- Despite all the signs suggesting that Bitcoin is about to see a 2017-style uptrend, one analyst is noting that he is watching for a $2,000+ pullback in the near-term
Bitcoin and the entire crypto market is drifting lower today, with its price falling following the strong rejection seen at around $23,700 yesterday.
The selling pressure here proved to be quite intense and caused it to see some notable downside. However, as seen countless other times, this could prove to be a bear-trap that eventually works in BTC’s favor.
One trader believes that the ongoing decline could extend further, noting that he is watching for an eventual test of Bitcoin’s liquidity within the upper-$19,000 region.
Bitcoin Struggles to Maintain Momentum Following Yesterday’s Rejection
At the time of writing, Bitcoin is trading down just over 1% at its current price of $22,590. This marks a notable decline from recent highs of $23,700 that were set yesterday.
The massive surge to this level proved to be unsustainable, as buyers did not have enough backing to push it any higher.
The crypto may now see some consolidation around its current price levels before it can surge higher.
Why One Trader is Watching for a Move to the Upper-$19,000 Region
One trader explained in a recent tweet that he expects Bitcoin to test its ultimate liquidity and demand zone between $19,600 and $20,000 at some point soon.
“BTC difficult to imagine this doesn’t get filled in at some point. maybe not immediately but i would have thought sooner rather than later,” he said.
Image Courtesy of Deadrabbits. Source: BTCUSD on TradingView.
If this level is tapped in the near-term, Bitcoin must post a strong reaction to it. Any sustained decline beneath it could open the gates for the entire market to see notable mid-term losses.
Featured image from Unsplash. Charts from TradingView.