Bitcoin Bulls Defend $17,700, But BTC Still Faces Dangerously Strong Resistance

  • Bitcoin has faced some intense selling pressure over the past few days, with the response to its recent break below $19,000 being quite bearish
  • This validates the notion that this is a crucial level that the crypto much firmly surmount and flip into support if it is to see any further upside
  • One trader is now noting that, while BTC did rebound off of its key support in the upper-$17,000 region, it still faces multiple hurdles now
  • One such hurdle includes the cryptocurrency’s newly established resistance within the mid-$18,000 region
  • If the crypto is unable to break above this region, it could face serious inflows of selling pressure that lead it even lower in the days and weeks ahead

Bitcoin has been facing some turbulence over the past 24-hours, which comes close on the heels of an extended bout of consolidation seen throughout the early part of the week.

The recent break below $19,000 was a sign of underlying weakness, as this has long been a pivotal level for the cryptocurrency.

Overnight, BTC plunged as low as $17,700 before finding some strong support that helped halt its decline and sent it back above the $18,000 region.

Where the cryptocurrency trends in the mid-term should depend largely on whether or not it can now surmount the support-turned-resistance it faces between $18,500 and $18,700.

One analyst is pointing to this as a key near-term hurdle for BTC.

Bitcoin Struggles to Gain Momentum as Bears Take Control 

At the time of writing, Bitcoin is trading down significantly from its daily highs at its current price of $18,400.

This does mark a notable rebound from its overnight lows of $17,640 set when the selling pressure on the market began ramping up.

Luckily, the strong defense of this level confirms it as mid-term support and may signal that a “V-shaped recovery” is imminent.

Analyst: Former Support Levels Likely to Act as Major Hurdle for BTC

One trader explained in a recent tweet that the previous support Bitcoin had within the mid-to-upper $18,000 region is now likely to act as strong resistance.

As such, this price region is the next crucial hurdle that BTC must overcome for it to see any serious momentum.

“BTC: Fell through support and now seeking to get back above the $18,500-18,700 range, which is the critical zone. $17,700 indeed provided short term support…” he said while pointing to the below chart.

Image Courtesy of Michaël van de Poppe. Source: BTCUSD on TradingView.

The coming few days should provide some serious insight into where Bitcoin will lead the aggregated market in the days and weeks ahead.

Featured image from Unsplash.
Charts from TradingView.

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