Bitcoin has seen some volatile price action late, but it has mostly supported bulls.
The crypto rose as high as $28,500 this morning before posting a heavy rejection that sent it down to a low of $26,500.
It has found some good support around this price level and has been trying to use it as a support base to expand during the morning.
Where the mid-term trends will inevitably depend on whether or not these peaks mark a blow-off top for cryptocurrency
One analyst suggests that, while this is a possibility, the subsequent fall after facing rejection at these highs has not been enough to confirm that “the top” is at the top.
Bitcoin has been flashing signs of intensity over the last few days, ranging from a low of $24,000 on the 25th of this month to a high of $28,500 overnight.
While it was opposed here, it still trades substantially from where it was just a few days ago, and could continue to rally higher in the months ahead.
One trader points to the possibility that this recent rally and rejection is a blow-off top, but he is not completely persuaded by the intensity he saw in the post-rejection era.
Bitcoin Rejects at Overnight Highs But Remains Technically Strong
At the time of writing, Bitcoin is trading just over 1% at its current $26,800 mark. This marks a remarkable turnaround from the $26,500 lows set this morning.
It also marks a decline from its $28,500 highs set overnight as the bulls stepped up and converted the crypto’s modest grind higher into a full-fledged parabolic upswing.
The rejection here was heavy, but the bulls are in the process of absorbing the intense pressure of sales.
Here’s Why One Trader Isn’t Convinced That BTC Posted a Blow-Off Top
While talking about this price action, one trader clarified that he was watching Bitcoin’s continued response to its recent refusal.
Although he does not assume that this refusal was a blow-off top, he is closely monitoring the crypto’s continued response to recent sales pressure inflows.
“That does NOT look like a blow-off top to me (yet). I could be wrong, but this 6.43% down move in 55 minutes, although massive at current market cap, isn’t enough to make me believe ‘the top’ is in.”
Image Courtesy of SalsaTekila. Source: BTCUSD on TradingView.
Since BTC is in the process of rebounding after its recent sale, there is a good chance that the bulls will refute the possibility of this being a local peak.
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