Bitcoin’s bulls have lost the overwhelming strength they incurred yesterday when they propelled BTC off of its recent lows of $6,400, as the crypto has now lost nearly all of the momentum that it incurred during the course of this fleeing rally.
It is important to note that this recent rally marked an ardent defense of a key multi-year trendline that bulls need to continue defending, which may signal that the crypto will see continued upside in the near-term.
Bitcoin Bulls Defend Key Trendline; Are Further Gains Imminent?
At the time of writing, Bitcoin is trading down nearly 1% at its current price of $7,200, which marks a notable decline from its daily highs of nearly $7,600 that were set at the peak of the relief rally.
It is imperative to note that the move – which led some analysts to believe that $6,400 was a long-term bottom for the cryptocurrency – appears to be somewhat weak, as bulls are now attempting to defend BTC’s position within the $7,000 region from aggressive selling pressure.
If Bitcoin does see further selling pressure in the near-term, the cryptocurrency could be at risk of seeing significantly further losses, as it is trading just a hair above a critical multi-year trendline.
Mr. Anderson, a popular crypto analyst on Twitter, spoke about this trendline in a recent tweet, explaining that the recent drop to $6,400 marked a breach of this level, which has since been reclaimed.
“$BTC 4-year Log Trendline update: As mentioned, BTC was in the midst of a 15th test of a very clean 4-yr trendline. Clean b/c drawn w/ coordinates from base through the 2019 bottom it has ZERO weekly closes outside the trendline. Thus far, we have reclaimed intra-week yet again,” he said while pointing to the charts seen in the below tweet.
$BTC 4-year Log Trendline update:
As mentioned, BTC was in the midst of a 15th test of a very clean 4-yr trendline
Clean b/c drawn w/ coordinates from base through the 2019 bottom it has ZERO weekly closes outside the trendline
Thus far, we have reclaimed intra-week yet again pic.twitter.com/pMiio2tVHX
— Mr. Anderson (@TrueCrypto28) December 19, 2019
How BTC continues reacting to this level in the coming days and weeks will provide valuable insight into the long-term outlook of Bitcoin and the aggregated crypto markets.
Featured image from Shutterstock.