What Bitcoin bulls can now become threatening in the short term

What Bitcoin bulls can now become threatening in the short term – Trader explains

  • Bitcoin has shown some signs of moderate strength in recent days, with bulls vehemently resisting a sustained decline below $18,000.
  • Buying pressure below this level was moderate, triggering only a slow upward movement.
  • Until the crypto currency can reach a level that triggers a massive buying wave that creates another „V-shaped recovery“, there is a chance that it will experience further weakness.
  • One trader is now pointing out that a downward movement is possible in the near future – some technical signals seem to indicate that a downward movement may be imminent.
  • He also notes that a long position and the expectation of a move above $20,000 is an overcrowded trade that may not take effect until there is a „significant correction“.

Bitcoin and the rest of the crypto market were able to move up today, with Bitcoin Revolution the rise of the benchmark crypto currency back above $18,000 giving the bulls some lift.

Where it goes in the medium term depends largely, if not entirely, on BTC’s final reaction to $19,000. This has been an important mark in the past, and when it was crossed, it was a test of the all-time high and when it fell below it, it triggered a sell-off.

A trader expects a significant correction before BTC can break through the $20,000 heavy resistance.

Bitcoin shows strength as bulls recapture $18,000

Bitcoin is currently trading at its current price of $18,400, up just over 2%, and the recent drop below that level was very threatening at the time, but the bulls have defended the support at $17,600 and have since helped it regain its footing in the $18,000 region.

As long as the bulls can continue to defend themselves against an intense downtrend, there is a high probability that the crypto currency will continue to push higher.
Top trader claims that BTC will probably see a significant correction

One trader now provides a somewhat serious and pessimistic outlook on Bitcoin’s technical strength and explains that a downward movement is very likely before BTC can build up enough buying pressure to set new highs.

„I don’t like how BTC looks in the short term when you have a bullish trend. Two rejections at resistance with a substantial bear div and declining momentum. Too many people still expect the price to break through the 20K mark at any moment. That won’t happen until a major correction, IMO.“

It remains unclear how deep the coin has to sink to trigger another upward trend – but there is a high probability that such a move will happen sooner rather than later.