- Bitcoin has seen unprecedented volatility throughout the past few days, with its ascent reaching a boiling point last night when bulls stepped up and sent it flying to highs of $18,600
- The selling pressure here was quite intense and rapidly caused it to see a selloff
- Within a mere matter of minutes, its price declined from highs of $18,600 to lows of $17,400, with the support here sparking a sharp rebound
- It has since stabilized and is consolidating just below $18,000, with its short-term technical outlook remaining strong
- One analyst is now noting that there are only two key resistance levels left before the cryptocurrency sets fresh all-time highs
- These levels could be broken sooner than investors expect
Bitcoin has seen some wild price action throughout the past few days and weeks. Bulls have been attempting to control its trend, sending it to highs of $18,600 late last night.
However, these highs were short-lived, and a massive influx of selling pressure stopped the cryptocurrency in its tracks. Within a matter of minutes, its price shed over $1,000 and plunged into the lower-$17,000 region.
It has since rebounded and has been consolidating below $18,000.
One trader is now noting that there are really only two resistance levels left that the crypto needs to break for it to set fresh highs.
He is pointing to $18,900 and $20,000, noting that above this level it’s clear skies until nearly $24,000.
Because bulls have shown strength for the past roughly 80 days, there’s a strong possibility that a push up towards this level is imminent in the near-term.
Bitcoin Retraces from Daily Highs as Sellers Try to Reverse Uptrend
Bitcoin’s uptrend got overheated last night when bulls sent it flying towards $19,000. It is now trading down significantly from these highs.
At the time of writing, BTC is trading down just under 1% at its current price of $17,530. This marks a slight rise from daily lows of $17,400 but a nearly full erasure of the gains seen when it posted its “V-shaped” recovery last night.
Analyst: BTC Only Has Two Resistance Levels Left Before New Highs
While sharing his thoughts on where Bitcoin might trend in the near-term, one analyst explained that there are only two resistance levels left before it sets fresh all-time highs.
“BTC: Just hit the 1 to 1 extension from the March-August run. There’s not much to play with anymore in terms of targets. Only two levels left ahead are 18900 (highest weekly close) and 20k (ATH). 1.618 extension @ 23.775k.”
Image Courtesy of Smokey. Source: BTCUSD on TradingView.
Unless bulls reverse the damage done by last night’s selloff, there’s a possibility that Bitcoin will see further near-term downside before testing these resistance levels.
Featured image from Unsplash. Charts from TradingView.