Bitcoinist - 11/19/2020 1:11:27 AM - GMT (+0 )
- Bitcoin underwent a rapid correction last evening after the coin pressed as high as $18,500 on leading exchanges.
- Even still, analysts remain optimistic on the leading cryptocurrency.
- One trader said that since Bitcoin managed to hold key support levels despite entering the low-$17,000s twice in the span of a few hours, it could move to new highs.
Bitcoin underwent a rapid correction last evening after the coin pressed as high as $18,500 on leading exchanges. The coin fell by around $1,000 in the span of a minute or two, plunging from those highs to $17,400.
The cryptocurrency faced strong on-chain resistance. There was also a large amount of selling pressure on crypto exchange order books. Commenting on the move, an analyst wrote:
“I don’t know why so many people assume there is a “they” in moves like this. its just well-informed short time frame scalpers testing the market and successfully finding a pocket of liquidity from top longers who folds their positions in quick succession.”
Analysts think the cryptocurrency will maintain its bullish pressure despite the recent drop.
Commenting on the four-hour chart, which shows strong wicks into the low-$17,000s, a trader recently said:
“sigh this is so retarded bullish strong daily close here and we’re prob taking ATH today or tomorrow on btc same pattern as 16k, first long ass bottom wick from initial profit-takers second long ass bottom wick from subsequent profit takers on the bounce next time it runs imo.”
As the chart shows, Bitcoin has managed to hold key support levels despite entering the low-$17,000s twice in the span of a few hours. Bitcoin managing to maintain high price levels, the analyst explained, will likely trigger a move toward all-time highs. Chart of BTC’s price action over the past few days with analysis by CryptoGainz
Source: BTCUSD from TradingView.com
Other analysts are optimistic that the trend is still positive for Bitcoin. Referencing how there are little resistances until new all-time highs, a trader recently said:
“BTC: Just hit the 1 to 1 extension from the March-August run. There’s not much to play with anymore in terms of targets. Only two levels left ahead are 18900 (highest weekly close) and 20k (ATH). 1.618 extension @ 23.775k.”
Image Courtesy of Smokey. Source: BTCUSD on TradingView.
Many have stated that by the looks of it, the recent drop was a clear bear trap. The issue is that there remains many bullish market trends for Bitcoin, such as low funding rates and a mass amount of withdrawals from exchanges.
Adding to this, the fundamentals of the space continue to improve as monetary printing continues and as Bitcoin gains notable Wall Street backers.