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- Bitcoin saw a sharp drop overnight that occurred after a period of immense strength
- This plunged the token to the $ 18,000 level, which has long been a strong support for the cryptocurrency.
- The next trend will largely depend on whether or not it can continue to hold the support it found at this key price level.
- A trader is indicating how aggressively this decline was bought, indicating that he may be positioned to see significantly further short-term gains.
- The trend over the coming days and weeks will largely depend on the next weekly close of the candle
Bitcoin has shown some signs of immense strength over the past few days and weeks, with buyers trying to take control of its price action as the bears show the first signs of vitality seen in weeks.
The next few days should provide some serious information on where the entire market will go.
A trader is now observing that the cryptocurrency’s reaction to this selloff indicates that a long-term bottom price is being created.
He believes this will allow him to rebound and continue his rise, with the first wave of overzealous buyers being “destroyed”.
Bitcoin sees its first major selloff since it hit $ 19,000
Over the course of Bitcoin’s multi-year uptrend, the cryptocurrency has shown some immense signs of strength, seeing only a few fleeting sell-offs followed by rises.
This latest drop does not appear to be an exception to this trend, as BTC’s price fell as low as $ 17,650 before facing a “V” recovery which led to a significant rally.
It is now in the process of making up for the gains lost due to this decline and could be positioned to see further upside in the near term.
The analyst says that BTC has set a new minimum price
A trader explained in a recent tweet that the cryptocurrency’s reaction to this recent selloff indicates that a new minimum price has been set, which could allow it to climb significantly higher.
He is now waiting for a higher move, noting that aggressive buying pressure during this latest rally was promising.
“What you want to pay attention to now is how aggressively this dive is bought. I think the floor is passively established. Overzealous early buyers are destroyed. Here is a sign of that. “
Bitcoin’s trends tonight should provide insight into where Bitcoin will move for the week ahead, as its weekly close of the candle is only hours away.
Featured image from Unsplash. Price action from TradingView.
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