Bitcoin Price Skyrockets, But BTC Faces Growing Resistance Around $4,000
Bitcoin has been able to maintain its upwards momentum that it incurred a few days ago and BTC has now pushed up to $4,000. This upwards price move has been fueled by a surge in trading volume, but one analyst is now importantly noting that trading volume over high-time-frames must improve in order for an upwards price move to be sustained long-term.
Other analysts are also importantly noting that Bitcoin is now beginning to establish $4,000 as a level of resistance, which could prove to be a critical level that must be broken through in order for further gains to ensue.
Bitcoin (BTC) Continues Climbing, But Faces Resistance at $4,000
At the time of writing, Bitcoin is trading up nearly 3% at its current price of $3,985. Bitcoin began its recent push on February 17th, when its price dipped to $3,600 before surging to its current price levels.
Following this move, BTC traded sideways for less than a day before continuing to climb until it hit approximately $4,000, which has proven to be a level of resistance.
Lucid TA, a popular cryptocurrency analyst, spoke about this resistance level in a recent tweet, noting that he believes BTC will rest around its current price levels before continuing climb.
“$BTC is hitting the first significant resistance since the breakout, I think we’re likely to rest a little while here.”
$BTC is hitting the first significant resistance since the breakout, I think we’re likely to rest a little while here. pic.twitter.com/xa8O0Yn3mZ
— Lucid TA (@Lucid_TA) February 19, 2019
Hsaka, another popular analyst, shared a similar sentiment in a recent tweet, telling his followers that he will begin looking to short Bitcoin when its price reaches the low-$4,000 region.
“$BTC Not looking to short until the demarcated zone. Meanwhile, here’s an alternate way to find confluence with your S/R levels. Divide up a range/swing into quarters.”
Not looking to short until the demarcated zone.
Meanwhile, here’s an alternate way to find confluence with your S/R levels. Divide up a range/swing into quarters. pic.twitter.com/luYP1fgwS2
— Hsaka (@HsakaTrades) February 19, 2019
Because Bitcoin and the entire cryptocurrency markets are fresh off of a large price surge, it is likely that they will range sideways, or drop slightly, before garnering enough buying pressure to propel them higher.
Analyst: Bitcoin Trading Volume Must Increase in Order for Price to Surge Higher
One notable feature of this latest BTC price surge is that its 24-hour trading volume has climbed significantly, surging from weekly lows of under $6 billion to its current levels of roughly $10.5 billion.
Josh Rager – another popular analyst – explained that over a longer time frame, Bitcoin’s trading volume is down significantly and an inability to continue increasing may lead BTC’s price back down to its support levels in the low-$3,000 region.
“$BTC Chart: Bitcoin currently at resistance level with a break and close above $4100 is bullish… But… Volume continues to decrease on high time frames: the decreasing volume w/ rising price = bearish. If the volume doesn’t pick up, I foresee $BTC price dropping back to support,” he explained.
Bitcoin currently at resistance level with a break and close above $4100 is bullish
Volume continues to decrease on high time frames: the decreasing volume w/ rising price = bearish
If the volume doesn’t pick up, I foresee $BTC price dropping back to support pic.twitter.com/e5C18MEDTu
— Josh Rager (@Josh_Rager) February 19, 2019
As Bitcoin begins picking up steam and recovering much of its recent losses, analysts will likely gain further insight into whether or not this is a sustained movement, or if a drop back to its strong support level of $3,000 is inevitable.
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