Bitcoin saw a sharp drop overnight that came after a period of immense strength.
That brought BTC up to $ 18,000, which has long been a strong support for the cryptocurrency.
Where bitcoin heads next will largely depend on whether it can hold out above the support that exists at this important price level
One trader points out how aggressively this bear market was bought – suggesting that Bitcoin may be able to see significantly more upside potential in the near future.
Bitcoin has shown some signs of immense strength over the past few days and weeks, with buyers trying to take control of price action as the bears have shown the first signs of vitality for weeks.
The coming days should provide some serious insight into where the entire market is headed next.
A trader now notes that the cryptocurrency’s reaction to this sell-off suggests that a long-term floor price is being created.
He believes this will allow BTC to rebound and continue its rise, “undoing” the first wave of overzealous buyers.
Bitcoin experiences its first major sell-off, reaching $ 19,000
Over the course of Bitcoin’s multi-month uptrend, the cryptocurrency has shown some immense signs of strength and seen only fleeting sell-offs, each followed by an uptrend.
This recent slump does not seem to be an exception to this trend – BTC price climbed as high as $ 17,650 before facing a “V-shaped” rebound that caused it to move significantly higher.
The asset is now in the process of recovering the profits that were lost as a result of this decline. And BTC may be able to make further gains in the near future.
Analyst: Bitcoin has hit a new floor price
One trader wrote in a tweet: The reaction of the cryptocurrency to this recent sell-off suggests that a new price floor has been reached that could allow BTC to move significantly higher.
He is now watching an upward move and comments that the aggressive buying pressure during this recent rally has been encouraging.
“What to watch out for now is how aggressively this dip is being bought. I think the soil will passively prevail. First, overzealous buyers are ruined. This is a sign of that. ”
The trends of the next few hours should provide some insight into how Bitcoin and the aggregated crypto markets will behave this week.