- Bitcoin has seen some turbulent price movements lately, but it has favored bulls in general
- The crypto soared to $ 28,500 this morning before posting a strong rejection that dropped it to lows of $ 26,500
- It has found strong support around that price level and is trying to use it as the base of support it can grow on all morning
- Where there are medium-term trends undoubtedly depends on whether these highs represent a discount to the cryptocurrency or not
- One analyst believes that while this is a possibility, the subsequent decline following a rejection of these highs is not enough to confirm that “the top” has been reached
Bitcoin has shown signs of strength in the past few days, rising from lows of $ 24,000 on the 25th of this month to highs of $ 28,500 overnight.
Although there was a rejection here, it is still trading significantly higher than it was a few days ago, and it could continue to rise in the months ahead.
A trader points out the possibility that this recent rally and rejection is a discount, but isn’t really convinced given the strength that was seen in the aftermath of the rejection.
Bitcoin refuses overnight, but remains technically strong
At the time of writing, Bitcoin is trading a little over 1% from its current price of $ 26,800. This is a remarkable rebound from lows of $ 26,500 set this morning.
It’s also a drop from the highs of $ 28,500 made overnight when the bulls rose, turning the crypto’s slight grind into a full-fledged parabolic surge.
The rejection here has been intense, but bulls are in the process of absorbing the intense selling pressure.
Here’s why a trader is not convinced that BTC released a blow-off top
While talking about this price move, a trader stated that he was watching Bitcoin’s continued reaction to the recent rejection.
While he doesn’t think this denial was a blow off, he is closely watching crypto’s continued response to recent influxes of selling pressures.
“That does NOT (yet) look like a blow-off top to me. I could be wrong, but this 6.43% drop in 55 minutes, while massive at current market capitalization, is not enough to make me believe “the top” has been reached. “
Image courtesy of SalsaTekila. Source: BTCUSD on TradingView.
With BTC recovering from the recent sell-off, there is a good chance that bulls will negate the possibility of a local spike.
Featured image from Unsplash. TradingView charts.