Bitcoin has seen some wild price action throughout the past few days and weeks. Bulls have been attempting to control its trend, sending it to highs of $18,600 late last night.
However, these highs were short-lived, and a massive influx of selling pressure stopped the cryptocurrency in its tracks. Within a matter of minutes, its price shed over $1,000 and plunged into the lower-$17,000 region.
It has since rebounded and has been consolidating below $18,000.
One trader is now noting that there are really only two resistance levels left that the crypto needs to break for it to set fresh highs.
He is pointing to $18,900 and $20,000, noting that above this level it’s clear skies until nearly $24,000.
Because bulls have shown strength for the past roughly 80 days, there’s a strong possibility that a push up towards this level is imminent in the near-term.
Bitcoin Retraces from Daily Highs as Sellers Try to Reverse Uptrend
Bitcoin’s uptrend got overheated last night when bulls sent it flying towards $19,000. It is now trading down significantly from these highs.
At the time of writing, BTC is trading down just under 1% at its current price of $17,530. This marks a slight rise from daily lows of $17,400 but a nearly full erasure of the gains seen when it posted its “V-shaped” recovery last night.
Analyst: BTC Only Has Two Resistance Levels Left Before New Highs
While sharing his thoughts on where Bitcoin might trend in the near-term, one analyst explained that there are only two resistance levels left before it sets fresh all-time highs.
“BTC: Just hit the 1 to 1 extension from the March-August run. There’s not much to play with anymore in terms of targets. Only two levels left ahead are 18900 (highest weekly close) and 20k (ATH). 1.618 extension @ 23.775k.”
Image Courtesy of Smokey. Source: BTCUSD on TradingView.
Unless bulls reverse the damage done by last night’s selloff, there’s a possibility that Bitcoin will see further near-term downside before testing these resistance levels.
Featured image from Unsplash.Charts from TradingView.
