- Bitcoin saw a massive rally yesterday evening that allowed it to set fresh all-time highs above $29,000
- The cryptocurrency did meet some serious selling pressure here that slowed its ascent and caused it to decline back down towards $28,000
- It does appear to be finding some support here, but it remains unclear as to how long it will last for
- One analyst spoke about this in a recent tweet, noting that he is preparing for a total trend shift that causes BTC to move back down towards $20,000
- He notes that the time and distance of each leg higher is getting smaller as BTC advances higher, which is a sign of exhaustion in his eyes
Bitcoin is currently sliding lower following a break above its all-time highs that took place yesterday evening.
The strength that the cryptocurrency has seen as of late cannot be understated, as each week it has been adding several thousand dollars to its price.
One trader believes that there’s a strong possibility that this uptrend will grind to a halt in the near-term and be followed by a decline down towards $20,000.
He points to some signs of exhaustion to justify this notion.
Bitcoin Struggles to Gain a Foothold Above $29,000 as Sellers Fight Back
Bitcoin saw a wild rally yesterday afternoon that allowed its price to rocket past $29,000, setting fresh all-time highs once again.
The selling pressure here was significant and greatly slowed its ascent. It has been drifting lower ever since.
Where the crypto trends next will likely depend on whether or not bulls can hold its price above $28,000 in the coming days and flip this previous resistance zone into support.
Trader Claims Move to $20,000 is Imminent
One trader explained in a recent tweet that he believes a move down towards $20,000 is imminent in the near-term.
He notes that Bitcoin’s rallies have been getting weaker and shorter as it nears $30,000, which is a sign of exhaustion amongst bulls.
“The time and distance of each $BTC move gets smaller. Less consolidation and less upwards movement. Markets can be like a pendulum and this will swing the other way. Theory remains unchanged. We will see low 20’s,” he said.
Image Courtesy of Pentoshi. Source: BTCUSD on TradingView.
The coming few days should provide some serious insights into where the entire market will trend in the mid-term.
A continuation of this ongoing downtrend could mark Bitcoin’s 24-hour highs as a local top and be a sign that downside is imminent in the near-term.
Featured image from Unsplash. Charts from TradingView.
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Author: Cole Petersen