- Bitcoin and the entire cryptocurrency market have seen mixed price movements over the past week
- It has mostly favored bears, with selling pressures being quite significant when BTC broke below $ 40,000
- This caused the entire market to fall, but the bulls are in the process of reversing that decline as they propel Bitcoin towards $ 35,000
- Where the trends take in the coming days and weeks will undoubtedly depend on whether or not the recent drop towards $ 30,000 is a local low
- One trader believes that there are several sighs, all of which indicate that an uptrend is imminent, meaning that BTC is on the verge of rising back to $ 40,000
Bitcoin has put the entire crypto market on a wild ride for the past few days and weeks. The recent break below $ 40,000 resulted in an accelerated decline to $ 30,000.
The buying pressure turned out to be somewhat significant here and has so far been sufficient to mark this level as a local low for the cryptocurrency.
A trader now notes that he expects these lows to continue and continue to act as a strong support for the cryptocurrency.
This could mean it will continue to move higher in the coming days, potentially reaching as high as $ 40,000 before encountering resistance.
Bitcoin recovers from the overnight sell-off
Last night, Bitcoin faced increased selling pressure that drove it into the $ 32,000 region.
Buying pressure was significant here and helped catalyze a rebound that showed few signs of slowing.
At the time of writing, Bitcoin is trading just under 2% at its current price of $ 34,600. It has faced immense resistance of around $ 35,000 and that needs to be turned into support.
BTC flashes an “impressive” jump as a local basic form
One analyst believes Bitcoin is forming a local floor, with the support it is establishing in the region with less than $ 30,000 proving to be remarkable.
He explains that the low wicks of BTC’s 4-hour candles combined with aggressive bidding each time they dive into this region suggest that the bulls are regaining control of price action.
“BTC – H4: Very impressive buybacks shown. I really like these wicks on the bottom of these h4 candles. I think we have hit the local low for the time being. I could see that we are back to 36 very quickly here. “
Image courtesy of NekoZ. Source: BTCUSD on TradingView.
As long as Bitcoin continues to respect this level as a support, there is a high probability that it will continue to expand upward in the coming days.
Featured image from Unsplash. TradingView charts.