In a just released article on newsbtc Cole Petersen notes that the $4,000 region has previously been a strong resistance level for bitcoin. Although the current stability is positive for investors BTC has on several occasions gone down after trading sideways for a time. One analyst, however, claims that bitcoin is now approaching a historic bounce level and could be a sign of further gains are about to happen.
As Petersen published his article BTC was trading at $4,070 up a bit from its low so far today of $4,030. Bitcoin has been trading in a tight trading range ever since it broke $4,000 briefly last Friday. However, since then the upward momentum had stalled. In late February Bitcoin pushed up to $4,200 before there was significant selling pressure that dropped the price back down to $3,800. $4,200 was validated as a strong point of resistance.
John Ragez’ view
Rager is a popular cryptocurrency trader on Twitter. Rager does not believe that BTC can break above the $4,200 resistance level any time soon. Rager said in a tweet: “$BTC Weekly Chart. Gandalf is holding $BTC below the mid $4,200 level. Bitcoin shall not pass the current resistance. So my target for the next drop has an aim at previous support near mid $3,500s.”
Volumes at historic bounce levels
Even though Raqez is right that Bitcoin will now be pressing against historic resistance levels it is a also seeing volumes at a historic bounce level As a result we may soon see increased volatility.
Crypto Thies view
Thies, a popular analyst on Twitter, said he expected bitcoin to continue upward, as a bounce level of this type is usually followed by a decent swing. He notes though that one factor arguing against this is the lack of any sell climax so far. Thies said in a tweet: “$BTC Volume MA (on bottom) is at historic bounce levels on the 1W. Volatility incoming. Confident in continuation to upside, although positioned to be fine in event of price dump. Always prepare for best and worst case. 1 bear thought I have, is a lack of sell climax thus far.”
If at its current price BTC is able to build more buying pressure then it is highly probable that it will move upward in the near future. However, on the weekend there may be greater volatility as trading volume diminishes.
Present situation
24 hours ago BTC was trading at just above the $4,000 level at $4,003 according to CoinDesk data. CoinDesk uses the average price on several exchanges for its data and thus can differ from data based on an individual exchange. BTC has dropped to as low as $3,964 since its open but has also been as high as $4,037 which was also its price at press time 19:20 Central Daylight Time. BTC seems headed in an upward direction so far. The present price of BTC can be found here.
Most of the top 20 bitcoins are rising in price but many just marginally.
