Bitcoin price currently appears to have gained huge strength as the bullish momentum has uplifted the price above the danger zone. After breaking the previous highs around $19,000, BTC price had marked new lows at $17,600. Here an extreme bullish price action gained more than 23% of the value to rise the price beyond $21K again. While the asset now seems to be poised to break the crucial resistance at $22,500, a bottom below $17,000 awaits to be tested soon.
During the 2018 rally, the BTC price was heavily rejected after marking highs close to $20K. This rejection dragged the price to as low as $3,128 after marking its initial lows at $6,000. Presently, BTC’s price amid the free fall from its ATH at $69,000 dropped hard marking its lows at $17,600. Further, if the pattern reapers, the new lows could be around $16,175 as predicted by a popular analyst.
The levels at $16K are considered pretty important and crucial as a lot of confluence is compelling to many traders to place their bids here. Therefore it is quite possible that the BTC price may never reach these levels and if hits may go far below. On the other hand, Bitcoin always tends to test the lower bottom when it is still in the middle of the bear market. Hence, testing the lower bottom may be possible as the present weekly candle is still very close to the crucial support.
The Bitcoin price had previously tried to halt the bearish trend but eventually ended up shedding more than 40% of its value. However, bearish pressure had played well then while presently, bulls appear to be much in place. Therefore, the possibility of a significant breakout without making new lows emerges. Conversely, if in case the bears drag the price beneath, then a notable bloodbath may prevail for a long.