- Bitcoin has seen some turbulent price action lately, but has generally favored bulls
- The cryptocurrency soared to $ 28,500 this morning before posting a strong rejection that pushed it to lows of $ 26,500.
- It has found some strong support around this price point and has tried to use it as a foundation of support to keep growing throughout the morning.
- Where it will be medium-term trends will no doubt depend on whether or not these highs mark a burst for the cryptocurrency.
- One analyst believes that while this is a possibility, the subsequent drop following a rejection at these highs has not been enough to confirm that ‘the top’ in
Bitcoin has shown signs of strength in recent days, rising from lows of $ 24,000 on the 25th of this month to highs of $ 28,500 overnight.
Although it was rejected here, it is still trading significantly from where it was a few days ago, and it may continue to rise higher in the coming months.
A trader points to the possibility that this recent rally and rejection may mark a blowout, but he is not entirely convinced due to the strength seen in the time after the rejection.
Bitcoin rejects overnight high, but remains technically strong
At the moment of writing, Bitcoin is trading just over 1% at the current price of $ 26,800. This marks a remarkable recovery from the USD 26,500 lows set this morning.
It also marks a decline from the $ 28,500 overnight highs as bulls emerged and the crypto’s slight gravel turned into a full-blown parabolic rebound.
The rejection here was intense, but bulls are coping with the intense sales pressure.
This is why a trader is not convinced that BTC has posted a Blow-Off Top
While he does not believe this rejection was an aversion, he is closely following the cryptocurrency’s ongoing response to the recent influx of selling pressure.
“That does NOT (yet) look like a blow-off to me. I could be wrong, but this downward movement of 6.43% in 55 minutes, while massive at the current market cap, is not enough to make me believe that ‘the top’ is there. “
Image Courtesy of SalsaTekila. Source: BTCUSD on TradingView.
Because BTC is in the process of recovering from the recent sell-off, there is a good chance that bulls are denying the possibility that this is a local summit.
Featured image from Unsplash. Charts from TradingView.