Bitcoin saw a massive rally last night that allowed it to hit new all-time highs above $ 29,000.
The cryptocurrency encountered serious selling pressure here which slowed its rise and dropped it back towards $ 28,000.
It seems that there is some support here, but it remains unclear how long it will last
An analyst commented on this in a recent tweet and commented that he is preparing for a total trend reversal that will cause BTC to fall back towards $ 20,000.
He comments that the time and distance of each step up is getting smaller and smaller as BTC rises higher, which in his eyes is a sign of exhaustion-
Bitcoin is currently sliding back down after breaking past its all-time highs from last night.
The strength that the cryptocurrency has seen lately cannot be underestimated as it has added several thousand dollars to its price every week.
One trader believes that there is a great possibility that this uptrend will stall in the near future and be followed by a decline towards $ 20,000.
He points out some signs of exhaustion to justify this idea.
Can Bitcoin Hold Above $ 29,000?
Bitcoin experienced a wild rally yesterday afternoon that pushed the price above $ 29,000, marking new all-time highs.
The selling pressure here was significant and slowed Bitcoin’s rise significantly. Since then, the coin has drifted further and further down.
Where the cryptocurrency goes next will likely depend on whether the bulls can keep the price above $ 28,000 in the coming days and convert this former resistance zone into support.
Trader claims a fall to $ 20,000 is imminent
One trader wrote in a tweet that he believes there is a move down towards $ 20,000 in the near future.
He comments that Bitcoin’s rallies have gotten weaker and shorter as it nears $ 30,000 – which is a sign of the bulls‘ exhaustion. The trader:
“The time and interval of each $ BTC movement is getting smaller. Less consolidation and less upward movement. Markets can be like a pendulum and that will swing the other way. The theory remains unchanged. We’ll see low 20s “
The coming days should provide some serious insight into where the entire market will head over the medium term.
A continuation of this sustained downtrend could mark Bitcoin’s 24-hour highs as a local top and be a sign that a downtrend is imminent in the near future.