Bitcoin’s Downtrend Could Soon Reverse as Analysts Eye Move to $18,500
Bitcoin has seen some rocky price action as of late, with bulls and bears battling for control over the cryptocurrency’s mid-term outlook. So far, this has resulted in the cryptocurrency seeing some bearish momentum, with sellers taking general control over its trend.
This may soon change, however, as buyers are in the process of pushing the cryptocurrency back above $18,000 – which was acting as a strong support level for the crypto throughout the day yesterday.
Where it trends in the mid-term should depend largely on its reaction to a few key levels – including $18,000.
One trader is noting that $18,500 is his short-term upside target, with a break above this level triggering a rally that potentially leads it back up towards its all-time highs.
However, there is a grim possibility, with the trader noting that a break below its $17,800 support could potentially send the benchmark cryptocurrency reeling down towards the lower-$16,000 region.
If this decline were to take place, it would not only strike a serious blow to Bitcoin’s technical strength, but it could also lead the entire cryptocurrency market to lose the momentum that has been established over the past few months.
Bitcoin Shows Slight Signs of Strength as Bulls Take Aim at $18,000
Bitcoin has seen some wild price action throughout the past few days and weeks, with bulls now aiming at sending the cryptocurrency up towards $18,000 following the recent break below this level.
At the time of writing, BTC is trading down just under 2% at its current price of $17,990. There appears to be some resistance stopping it from breaking $18,000, although it has yet to spark any intense selloff.
Here are the Key Levels on Analyst is Closely Watching for BTC
While sharing his thoughts on Bitcoin’s near-term outlook, one trader pointed to a few key levels that will likely hold serious influence over the cryptocurrency’s price action.
To see further upside in the coming days and weeks, he notes that breaking above $18,500 is vital.
“Trend is still down, but we might see a potential bullish trigger if $BTC flips back above $17,800 for support. Then the next trigger is $18,500. However, not doing that -> $17,000 and $16,300 next.”
Image Courtesy of Michaël van de Poppe. Source: BTCUSD on TradingView.
Where the entire market trends next will determine solely on Bitcoin’s reaction to these crucial price levels.
Featured image from Unsplash. Charts from TradingView.