- Bitcoin faced an incredibly harsh rejection earlier this morning that caused its price to plummet
- This came about directly following another test of the cryptocurrency’s all-time high, which was broken and tested on multiple occasions over the past day
- The resistance here is still significant and should not be overlooked
- Whether or not this level can be flipped into support anytime soon will offer serious insights into the entire market’s near-term outlook
- One trader is now noting that although a few indicators are flipping bearish following the rejection, he is hoping for a consolidation phase
Bitcoin and the rest of the crypto market have been caught within the throes of an intense uptrend throughout the past few days and weeks.
Its momentum finally stalled yesterday when the crypto set new all-time highs on many different exchanges, with this coming about following a rebound from lows of $ 16,400 that were set just a few days prior.
The strength seen by the crypto in the time since its decline to these lows is a positive sign, but the overnight rejection at just under $ 20,000 shows how intense this region’s resistance level is.
One trader is now hoping that BTC sees a bout of consolidation, as this could bring multiple bearish indicators back into neutral or bullish territory.
Bitcoin Faces Dire Rejection at Just Below $ 20,000
At the time of writing, Bitcoin is trading down just over 5% at its current price of $ 18,700. This marks a notable decline from its recent highs of $ 19,800 that were set yesterday.
These highs marked the highest level seen by the cryptocurrency since 2017, and on some exchanges, marked an all-time high.
The resistance here is still significant and shows no signs of letting up anytime soon.
BTC’s RSI Flips Bearish as Analyst Eyes Consolidation Phase
While speaking about this price action, one analyst observed that Bitcoin’s RSI indicator shows some signs of weakness.
That said, a consolidation phase around the cryptocurrency’s current price level could be its best hope, as this would allow the bearish indicators to drift back towards being neutral.
“Very confused by BTC. RSI shows some weakness. Dream scenario we consolidate here.”
Image Courtesy of Wolf. Source: BTCUSD on TradingView.
So long as Bitcoin can set a higher low and continue holding above its intra-decline lows of $ 18,200, then the cryptocurrency could be poised to see another strong rebound in the days ahead.
Featured image from Unsplash. Charts from TradingView.