Bitcoin is currently consolidating above $19,000 as it attempts to form this level into support. This has long been a pivotal level for the cryptocurrency, and breaks below it have sparked some intense selloffs.
Until $19,400 is firmly broken above and flipped into support, it is unlikely that Bitcoin will garner any serious momentum.
One trader is now watching for a move to $19,300, noting that this could spark a massive short-squeeze that helps propel Bitcoin’s price significantly higher in the days and weeks ahead.
Bitcoin Consolidates Following Weekend Rally
At the time of writing, Bitcoin is trading down marginally at its current price of $19,160. This is where it has been trading throughout the past day, with $19,400 continuing to stop it from seeing any further growth.
Once this level is shattered, posting a strong reaction to the upper-$19,000 region will be crucial for Bitcoin to see any further mid-term upside.
A rejection here could cause it to spiral lower, as it has on multiple occasions in the past.
Trader Claims $19,300 Could Spark a Massive Short-Squeeze
One popular cryptocurrency analyst is closely watching to see how Bitcoin reacts to $19,300, as he notes that a break above this level could cause BTC shorts to squeeze, boosting the crypto’s price action.
“Shorts were really aggressive again and they’re underwater now. Breach through 19300 and they get squeezed hard.”
Image Courtesy of Byzantine General.
This squeeze likely needs to take place sooner than later to have a drastic impact on BTC’s price action, as bears may slowly exit their short positions the longer Bitcoin ranges below this key level.
Featured image from Unsplash.Price Source: BTCUSD on TradingView.
