Bitcoin and the entire crypto market have been in an intense phase of consolidation in the past few days and weeks – although the cryptocurrency has recently seen both breakout attempts and collapses.
As recently as last night, Bitcoin System showed some promising signs of an uptrend that ultimately resulted in it facing another rejection in the middle of the $ 19,000 region.
The selling pressure here wasn’t enough to break underlying strength as BTC has since shown bullish signs as it continues to move higher
A trader now gives 4 specific reasons why they are not currently bearish on BTC – and concludes that a breakout above $ 20,000 is imminent.
Bitcoin is currently on its way up after there was weakness yesterday that caused the price of the cryptocurrency to fall from a high of $ 19,600 to a low of $ 19,050.
That spike came after several days of consolidation that drove BTC into bullish territory – but selling pressure within the mid to upper $ 19,000 region resulted in another sharp rejection.
Since then, Bitcoin has climbed back towards this important resistance area, and one analyst points out a couple of key factors that suggest an increase is imminent.
Bitcoin is showing signs of strength as the price rebounds
Bitcoin is currently trading at a price of $ 19,600. This corresponds to the daily high that was reached yesterday evening. Where the cryptocurrency goes in the medium term is likely to depend largely on its response to selling pressures between $ 19,500 and $ 19,800.
Once this region breaks up, all eyes will be on the breakout above $ 20,000 – which is widely expected to trigger the next massive rally.
4 factors show: This is why the cops are in control of BTC
A trader wrote in a tweet that 4 primary factors are decisive for a bear thesis – and none of them is currently seen on Bitcoin.
“BTC I would be bearish if: – This would have been a sweep into clean untested supply (area was tested 4+ times) – Funding would have been positive (it is negative across the board) – Premium would have spiked (spot makes brrrrr). So yes, I expect a test of 20K soon. „