- Bitcoin’s appears to be caught within a firm bear trend, with the cryptocurrency being wholly unable to see any sustained rebounds
- Each rally over the past week has been firmly rejected, with BTC rallying to highs of $34,500 yesterday before facing a rejection that sent it down towards $30,000 today
- Where the entire market trends next will undoubtedly depend on whether or not bulls can guard against a dip below $30,000
- The selling pressure that caused the recent dip is showing few signs of letting up anytime soon and may cause further near-term losses
- One trader is optimistic, however, noting that bulls could still take back control if they can break above one crucial level
It remains unclear whether this trend has been invalidated, but bulls certainly have some serious work in front of them if they want to reverse the recent selloff.
One analyst is pointing to $34,500, noting that this is a crucial level that bulls need to break for the market to see further upside. Once claimed, he is setting his sights on a move to $40,000+.
Bitcoin Shows Subtle Signs of Strength as Bulls Absorb Selling Pressure
At the time of writing, Bitcoin is trading down just under 1% at its current price of $32,000, which marks a notable decline from recent highs of $34,500 set just a couple of days ago.
The selling pressure here was significant and highlights that bears are still in control of the cryptocurrency’s price action.
It dipped down towards $30,000 today and was able to find some significant buying pressure, which is a good sign for bulls.
Here’s the key Level Bulls Need to Target
One analyst explained in a recent tweet that he is closely watching for Bitcoin to see a move past $34,500 in the near-term.
He believes that this could propel it straight to $40,000 in the days ahead.
“BTC: That $34,500 level wasn’t random btw. Perfectly capped upside yesterday. Reclaim that and I think we see 40k+.”
Image Courtesy of George. Source: BTCUSD on TradingView.
Bulls have their work cut out for them if they want to reverse the recent downwards spiral that has sent Bitcoin to the lower-$30,000 region.
A strong bullish trend reversal here, however, could result in the market seeing massive upside.
Featured image from Unsplash. Charts from TradingView.