- It has been a volatile past few days for Bitcoin and the entire crypto market, with the benchmark cryptocurrency’s bulls ardently trying to remain in control of it
- It has seen multiple sustained dips below $19,000, but each one is bought into aggressively and quickly reversed
- There is one crucial level being watched by a prominent analyst that could hold some heavy influence over the crypto’s price action
- He notes that a close below this level would be grim for bulls and possibly lead the cryptocurrency to reel down towards the “last line of defense” that bulls have
Bitcoin has been on a wild ride throughout the past few days and weeks, with the selling pressure seen around its all-time highs sparking multiple selloffs.
Although bulls have been unable to navigate beyond this price region successfully, the selling pressure seen here does seem to be getting weaker with each visit.
The first time this level was tapped, Bitcoin’s price reeled all the way down to lows of $16,400. The second time its price only fell into the lower-$18,000 region. This is a bullish trend if it persists.
One trader is closely watching its reaction to a crucial level right below where it is currently trading. He claims that a daily close below this level would be grim.
Bitcoin Shows Signs of Strength as Bulls Try to Reclaim $19,000
Ever since the latest $19,800 rejection, Bitcoin has struggled to gain a foothold above $19,000.
At the time of writing, the cryptocurrency is trading up just under 2% at its current price of $19,100. This marks a notable surge from lows of $18,200 but is still well below its daily highs.
If it cannot hold above $19,000, it could face another round of intense selling pressure that drives it lower.
Analyst: BTC Needs to Close Above This One Crucial Level
One prominent trader explained in a recent tweet that $18,400 is a crucial level for Bitcoin to close a higher time frame candle above.
He postulates that an inability to do so could result in the cryptocurrency’s price plunging to well-below $18,000.
“Things could get ugly if we close below dotted black line. Dotted blue line is bulls last line of defense otherwise I expect a bit of selling to happen,” he said while pointing to the below chart.
Image Courtesy of Altcoin Psycho. Source: BTCUSD on TradingView.
The coming few days should shine a light on Bitcoin’s strength, as a continued bout of trading above $19,000 would be bullish.
However, if it faces an influx of selling pressure and closes below $18,400, it could see a long-lasting trend change.
Featured image from Unsplash. Charts from TradingView.