Bitcoin has shown some signs of moderate strength over the past few days, with the bulls vehemently resisting a sustained drop below $ 18,000.
Buying pressure below this level was moderate and only triggered a slow rise to the top
Until the cryptocurrency can reach levels that trigger a massive wave of buying that creates another „V-shaped rebound“, the chances are it could experience further weakness.
A trader is now indicating that a move down may be possible in the near future – some technical signals seem to indicate that a move down may be imminent.
He also notes that being long and expecting to move above $ 20,000 is a crowded trade that may not materialize until there is a „significant correction“.
Bitcoin and the rest of the crypto market were able to move higher today, with the benchmark cryptocurrency’s surge back over $ 18,000 giving the bulls some boost.
Where to go in the medium term will largely, if not entirely, depend on BTC’s eventual response to $ 19,000. This has been an important level in the past, exceeding which resulted in a test of the all-time high and below which triggered a sell-off.
A trader expects a sizable correction before BTC can break the heavy resistance around $ 20,000.
Bitcoin shows strength as the bulls recapture $ 18,000
Bitcoin is currently trading with a plus of a little more than 2% at its current price of $ 18,400. The recent decline below that level was very threatening at the time, but the bulls have held the support at $ 17,600 and have since helped it re-establish itself in the $ 18,000 region.
As long as the bulls can still fight an intense downtrend, there is a high probability that the cryptocurrency will continue to push higher.
Top trader claims that BTC is likely to see a significant correction
One trader now gives a somewhat serious and pessimistic outlook on Bitcoin’s technical strength , stating that a move down is very likely before BTC can build enough buying pressure to make new highs.
“I don’t like what BTC looks like in the short term when you have a bullish bias. Two rejections on resistance with a sizable bear div and declining momentum. Too many people still expect the price to break the 20K mark at any moment. That won’t happen until a major correction is made, IMO. “
It remains unclear how deep the coin has to go to trigger another uptrend – but there is a high probability that such a move will happen sooner rather than later.