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Why Analysts are Concerned of a 30%+ Pullback

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  • Bitcoin and the entire cryptocurrency market have been caught in the throes of an intense uptrend throughout the past few days
  • Bulls have been aggressively propelling the cryptocurrency higher, with BTC now pushing past its key $19,000 resistance level
  • The selling pressure here has proven to be quite intense, making the firm break above this level technically significant
  • If the cryptocurrency can hold above $19,000 for an extended period of time, it could be a sign that upside is imminent for the token
  • One trader is now noting that there is one reason for concern, with one key level potentially acting as a magnate that will spark a 30%+ dip

Bitcoin and the aggregated crypto market are in a clear and firm bull market. Sellers have been unable to control its recent trend, with it only facing a few fleeting pullbacks.

The fact that each dip is met with such aggressive buying pressure signifies that serious upside could be imminent in the near-term.

Although BTC will surely face some resistance around its all-time highs, there’s a strong possibility that it will plow through the sell orders here once retail “FOMO” kicks in.

One trader is noting that it may first need to retest one key technical level before posting any significant rally higher.

Bitcoin Rallies Past $19,000 as Uptrend Continues Strong

At the time of writing, Bitcoin is trading up just over 4% at its current price of $19,200. This is around where it has been trading throughout the past few hours.

It does appear to be fairly stable above this price level, as sellers have yet to spark any intense selloff.

This could be a positive sign that indicates further upside is imminent, although the selling pressure around its all-time highs in the upper-$19,000 region may be what causes it to see a firm rejection.

Analyst: BTC Could See a Strong Pullback Before Pushing Higher

One trader believes that Bitcoin may need to test its 200-day MA before breaking above its all-time highs.

This could mean that a dip as low as $13,000-15,000 could be imminent in the days and weeks ahead.

“BTC: Something to be aware of: In 2017, the 200dMA underpinned the entire trend. We haven’t retested it in a while – wouldn’t be surprised to see a 30-35% dip in late Dec/early Jan to retest it as support for the next leg higher to $21k+.”

Image Courtesy of Nik Patel. Source: BTCUSD on TradingView.

The coming couple of days should provide insight into whether this pullback will occur or if BTC will continue its parabolic advance higher.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin

Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off

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Bitcoin (BTC) hit fresh local lows on Feb. 26 despite what appear to be ongoing largescal institutional buy-ins.

New lows despite bullish signs

Data from Cointelegraph Markets and TradingView showed BTC/USD $44,150 during Friday trading — last seen two weeks ago — after a rebound to $50,000 fizzled overnight.

Bitcoin had seen good news in the form of asset manager Stone Ridge planning to become the first Bitcoin mutual fund, along with major corporate purchases from MicroStrategy and Square. These, however, failed to stem the bearish mood, with 24-hour losses standing at near 10% at the time of writing.

“Everyone wants 42k, so we probably just go up now or drop to 38k on a savage wick. Crowd rarely gets what it wants,” popular trader Scott Melker summarized on Twitter.

Cointelegraph Markets analyst Michaël van de Poppe had prevously forecast ultimate support lying at around $38,000 should Bitcoin not find buying volume at higher levels.

“Bitcoin doesn’t look too great for a bull continuation coming period,” he said on Thursday.

“Still, retest at $54,000-55,000 could happen, but I’m cautious when we get there. If we lose $47,000, then I’m looking at $42,000-44,000 and $37,000-38,500 next. That should be the low.”

BTC/USD 1-hour candle chart. Source: Tradingview

Institutions are still buying: data

Data from the professional trading arm of U.S. exchange Coinbase meanwhile showed another major tranch of BTC leaving its books for a private or custody wallet — something which traditionally suggests institutional buying.

The latest spike of 12,100 BTC is the second this week, such large volumes themselves being a rarity, a fresh chart from on-chain monitoring resource CryptoQuant confirms.

Coinbase Pro outflow annotated chart. Source: Lex Moskovski/ CryptoQuant

The so-called “Coinbase premium,” the difference in price between Coinbase and Binance, flipped to negative for several brief moments as Bitcoin dropped to nearly $44,200. 

Coinbase premium vs. BTC/USD chart. Source: CryptoQuant/ Tradingview

As Cointelegraph reported citing CryptoQuant, whales appear to favor buying at current price levels, with the result that a dip much below $44,000 would be “unlikely,” according to CEO Ki Young Ju.

On Thursday, Ki described the last Coinbase Pro spike, which occurred at $48,000, as “the strongest bullish signal” he had yet seen in Bitcoin.