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Bitcoin Reaches a Critical Junction; What Analysts are Watching For

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  • It has been a wild past few weeks for Bitcoin and the crypto market, with the benchmark cryptocurrency posting massive gains while the rest of the market also shows continuous signs of strength
  • Altcoins are beginning to take the spotlight as BTC’s rally begins stalling, with the selling pressure at $19,000 slowing its ascent while Ethereum and smaller altcoins all rocket higher
  • Where BTC trends in the near-term will depend entirely on its continued reaction to $19,000
  • One trader is noting that Bitcoin is now at a junction, with its near-term trend potentially being a pivoting point for its mid-term outlook

Bitcoin has been flashing some signs of immense strength throughout the past few days and weeks, with the selling pressure seen at around $19,000 being quite intense.

Where the market trends in the mid-term will depend entirely on this level, as a rejection here could be incredibly dire.

That being said, a break above this level could be all that it needs to catch some immense momentum that sends it rocketing higher in the days and weeks ahead.

The coming few days should provide some insight into the crypto’s trend, as one analyst is noting that it is now trading at a junction point.

Bitcoin Pushes Towards $19,000 as Buyers Take the Wheel

At the time of writing, Bitcoin is trading up just under 1% at its current price of $18,725. This is around the price at which it has been throughout the past few days.

The selling pressure just above where it is currently trading has proven to be quite intense, but it has yet to catalyze any intense rejection.

This has led analysts to widely flip bullish on Bitcoin, anticipating an imminent break above this crucial resistance level.

Analyst: BTC Reaches a Crucial Junction

One analyst explained that Bitcoin is now reaching a critical junction, and how it trends in the near-term could set the tone for where it trends in the days and weeks ahead.

He is specifically looking for its reaction to both $19,000 and its $18,500 support.

“IMO we’re at that BTC junction where… -Buyers show up aggressively from 18.5k support zone, like they did after early Asia dip past week, and we take a shot at 19k again. OR -18.5k buyer get [destroyed], we break down and break down again, buy the dip market is no more.”

This means that the coming few days will be crucial for understanding where the entire market trends in the days and weeks ahead.

Featured image from Unsplash.
Pricing data from TradingView.



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Bitcoin

Bitcoin faces this final resistance zone before $20K all-time high

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Bitcoin (BTC) traders are pinpointing the order books of major exchanges that show the $19,500 level is a near-term resistance level.

Bitcoin rejects $19,500 for now

On Nov. 25, Bitcoin price was rejected at $19,500 with a relatively large volume across top spot exchanges. On Binance, for example, BTC price hit $19,484 before seeing a slight pullback to sub-$19,300.

BTC/USDT 4-hour chart (Binance). Source: TradingView.com

The minor rejection likely occurred because of the stacks of sell orders between $19,450 to $19,550.

A popular pseudonymous trader known as “Byzantine General” shared the order books of all major exchanges that showed $19,500 as a key area for sellers.

Vijay Boyapati, a Bitcoin researcher, similarly said that the $19,500 to $19,550 range remains as the last sell wall before a new all-time high.

If Bitcoin does not retest the $19,500 area again in the next several hours, this could mean that another drop is likely. Considering that it would be the last resistance until the new all-time high, traders expect some reaction from sellers.

Another small pullback would benefit Bitcoin because it would further neutralize the futures funding rate. The funding rate of BTC futures has increased once again to 0.07% on Binance Futures and other exchanges.

Considering that the average funding rate of Bitcoin is 0.01%, another short-term drop to reset the derivatives market may even strengthen the upward momentum.

Shorts being at levels unseen since April is a variable

However, a variable to consider is that the number of shorts in the Bitcoin market is at its highest since April 2020.