This signifies that the cryptocurrency is growing technically stronger, as the series of higher-lows formed in the time since it plunged to $16,400 last week is an incredibly positive sign for the cryptocurrency.
Where it trends in the mid-term may depend largely on whether or not bulls can hold its price within a key channel that has been formed throughout the past few days. One trader is looking to this channel’s boundaries for insight into where it might trend in the near-term, noting that a break below its lower boundary at roughly $18,500 could lead it significantly lower in the days ahead. For the time being, however, the cryptocurrency remains above this key support, with bulls ardently attempting to push it above $19,000.Bitcoin Shows Signs of Strength as Bulls Set Higher-Lows
One promising trend seen over the past week is the formation of higher-lows following each rejection at the cryptocurrency’s all-time highs within the mid-to-upper $19,000 region.
Following its first visit towards this level last week, the cryptocurrency’s price plunged as low as $16,400 before finding support and rebounding. A rejection and dip followed the second attempt to break above its highs to lows of $18,200. If this trend persists, it is a sign that bears are losing their control over this level and may indicate that a breakout into the $20,000 region is imminent.Trader Claims Move Towards $17,000 Could Soon Take Place
One trader in a recent tweet that a break below a channel that Bitcoin is currently caught within could lead it to plunge towards $17,000. He pointed to this pattern in a chart, showing that a break below the mid-$18,000 region would open the gates for a move significantly lower.“BTC: See if the channel holds or not. Either way would like to play the range from the lows around 17 for a bounce.”
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The coming few days should provide some insight into whether this bearish possibility will come to fruition.
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