Bitcoin’s bulls were able to defend BTC from facing a much steeper sell-off today, which comes closely on the heels of the recent rejection the cryptocurrency experienced, which to many investors signaled that significantly further losses were imminent.
Analysts are now explaining that bull’s ability to defend against further losses points to the possibility that the crypto will see further upside in the near-term, potentially even revisiting its recent highs within the upper-$7,000 region.
Earlier this week, bulls attempted to spark a rally that sent the cryptocurrency surging to highs of $7,700, although this was quickly met with significant selling pressure that sent it reeling down to lows of $7,050 earlier this morning.
Today’s dip was quickly bough up by bulls, who were able to absorb the large amount of selling pressure that had been sparked by its recent rejection at $7,700.
Bitcoin Bounces from Daily Lows at $7,050, Shows Hints of Bullishness
At the time of writing, Bitcoin is trading up just under 1% at its of $7,340, which is the highest level it has traded at all day.
UB, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that the bullish reaction to today’s dip towards $7,000 has – at least in the short-term – shifted the tides in favor of buyers, meaning that BTC may soon see further upwards momentum that leads it back into the upper-$7,000 region.
“$BTC – Closed my short… again. Strong reaction from the Range Low, hourly closed above intra-day S & R on decent volume. It’s starting to look like a move up to $7,500s or the Range High is possible,” he explained.
– Closed my short… again. Strong reaction from the Range Low, hourly closed above intra-day S & R on decent volume. It's starting to look like a move up to $7,500s or the Range High is possible. — UB (@CryptoUB)
If Bitcoin is once again rejected at its range highs within the upper-$7,000 region, it will likely signal that the crypto will continue its ongoing bout of sideways trading or see even further downside.
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