This morning (for those in the US) Bitcoin underwent a steady pullback. The pullback continued to Bitcoin being down 6% at one point valued at $17,610 USD. While this is to be expected this pullback still was rather interesting.
Once Bitcoin had hit ~$18,100 it underwent a rather significant and rapid drop to $17,610 before just as quickly ascending to back over $18,000. This rejection of below $18,000 was rather surprising to me for one reason in particular.
Bitcoin has failed 3 times to break the $19,000 barrier which to me would hint at weakness forming. This however did not stand up this time due to the rejection below $18,000. Bitcoin has climbed back up to $18,500 but will need to break out of the zone it has been stuck in ($18,400-$18,850) to continue its march up.
I would be extremely surprised if this minor pullback was the pullback I expect from Bitcoin. Bitcoin has a history with its bull market runs of having pretty dramatic pull backs and a 6% pullback would be a minor pullback if one even considers it a pullback versus a just down day. Bitcoins flare for dramatic increases and decreases add credence to this not being the pullback many expect. However, with the sharp rejection of price dip below $18,000 it will be interesting to see who wins out between the bulls and the bears this next week. This battle will really set the tone for if Bitcoin hits and surpasses the $20,000 point by the end of the year. If it doesn’t I could see people take profits right now and become more cash liquid for the beginning of 2021!
