- Bitcoin has actually seen some wild rate action throughout the past few days, with the crypto seeing a “pump and dump” rally that led it to $39,000 before it dropped to $32,000
- This price action shows that there’s a considerable number of bears wanting to fade BTC’s cost action at the minute
- It has actually recovered from its lows and is not showing any indications of wanting to collapse much lower, but its rate action has been heavy as of late
- One trader discussed that he is now looking for BTC’s reaction to $34,000 throughout the day
- It is important that the crypto firmly recovers this level and develops it as support
- Any firm break listed below it before the everyday close might put it in a precarious position
Bitcoin and the whole crypto market have been heavy since late, with BTC and altcoins alike struggling to gain massive momentum due to the immense selling pressure that bears have been placing on the benchmark crypto.
Where the market patterns in the days and weeks ahead need to depend largely on whether bulls can stop BTC from seeing any extreme selloff arising from the recent rejection at $39,000.
One trader is now viewing to see how BTC responds to $34,000, keeping in mind that this is a “line in the sand” that requires to hold for bulls to acquire any control over its cost action.
Bitcoin Struggles to Gain Momentum Following $39,000 Rejection
At the time of composing, Bitcoin is trading down simply over 1% at its current cost of $33,820. This marks an enormous dip from its recent highs of almost $39,000 set at the peak of the “Elon Musk” candle.
This candle came about shortly after Elon Musk added “#Bitcoin” to his Twitter bio, calling the bio modification “unavoidable” in a tweet.
$34,000 is a “Line in the Sand” for BTC
One trader explained that $34,000 is the key level to watch in the short-term, as a day-to-day close above or listed below this level might figure out Bitcoin’s near-term fate.
“BTC update: After an unpredictable day the other day, it makes good sense to revisit the BTC chart. Technically speaking, we’re trading back above resistance. BTC is chopping but that’s truthfully the best thing it can do after a run like this. $34k is again the line in the sand & & needs to hold.”
Image Courtesy of DonAlt. Source: BTCUSD on TradingView.
The coming few days should shine some light on whether BTC and the rest of the marketplace will reverse the technical damage done by the current pump and dump.
Included image from Unsplash. Charts from TradingView.