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- Bitcoin has yet to break out of key resistance levels in the past two weeks, with the resistance at $ 16,000 remaining strong
- The selling pressure here proved significant and stopped the immense bullish trend of the cryptocurrency right in its tracks
- The next trend of the entire market will likely depend on how Bitcoin trades as it approaches this crucial level.
- A prominent trader is saying that he expects Bitcoin to see a further cut in the near term, with this consolidation more likely than a “deep retracement”.
- If this trend were to occur, it could be very positive for altcoins, allowing many to further extend their recent momentum.
Bitcoin and the aggregate cryptocurrency market have seen mixed price actions in the past few days.
While BTC has formed a large trading range between $ 14,800 and $ 15,800, most of the altcoins are now catching up with the recent gains of the benchmark cryptocurrency.
Its consolidation phase has strengthened its outlook, potentially opening the door for altcoins to see further momentum in the days and weeks to come. Ethereum’s strong bullish trend has reinforced this possibility.
A trader explained in a recent tweet that he believes further side trading is a more likely possibility for Bitcoin than seeing a sharp short-term retracement.
Bitcoin pushes higher but remains rangebound
At the time of writing, Bitcoin is trading up just over 2% at its current price of $ 15,650. This is about the price at which it has been trading in the last week.
Bulls and bears have formed a relatively large trading range in recent times, which was confirmed earlier this week as BTC’s price soared to highs of $ 15,800 before facing a rapid rejection that sent it down to $ 14,800.
It has since traded between these two levels, not being able to gain decisive momentum.
BTC is likely to experience a further reduction in the uptrend
As long as Bitcoin remains below $ 16,000, a highly respected trader believes the cryptocurrency will see further side swaps.
He talked about it in a recent tweet, adding that side trading is more likely to see a deep retracement.
“Quick Update: BTC still in chop mode, no break and hold resistance, but I guess it’s more likely than a deep retracement. In case of retrace looking at the sub 14k area to fill in the longs. Just watching for now, no + EV trades here imo. “
Image Courtesy of Flood. Source: BTCUSD on TradingView.
Bitcoin’s next trend will likely hinge on its reaction at $ 15,800 and $ 16,000. A rejection here could confirm that it is in a prolonged consolidation phase, while a break above this level will put a move to all-time highs on the table.
Featured image from Unsplash. Charts from TradingView.
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