BTC settled at $ 17,500 before an impressive weekend rally saw it repress resistance at around $ 19,500
Bitcoin price spiked to highs of $ 19,400 after bottoming out near $ 17,500. The latest rise to the $ 19,500 resistance level saw BTC’s dominance surge to 63%, with weekend earnings for most altcoins pushing the capitalization of the global cryptocurrency market to $ 563 billion.
For Bitcoin bulls, the main short-term target continues to crack the $ 20,000 line. With prices around $ 19,100 at the time of writing, another $ 1000 – a candle up would do. However, data on the chain and technical indicators suggest reversing lows of $ 18,000.
BTC / USD
Bitcoin’s dip under the 20-EMA ($ 18,494) this past week pushed its price to a near-record low of $ 17,500. But as the daily chart shows, bulls buying the dip pushed prices above the moving average.
BTC / USD daily chart. Source: TradingView
This upward pressure saw the BTC / USD pair settle above $ 19,000, with bulls running into resistance near $ 19,400.
Currently, buyers are battling downward pressure at the top limit of the descending channel ($ 19,100).
If bulls keep prices above the channel’s highest trend, the next step could take BTC past the large overhead resistance level at $ 20,000.
The upward 20-EMA curve and the RSI which remains positive above 50 suggest that bulls have the hunger to seek a new high.
However, as shown on the 4-hour chart, bears are likely to push prices upside down and drop to the 20-EMA or lower.
A sell signal in the form of a nine green candlestick has appeared. A decline from current levels could see BTC / USD drop to $ 18,815 (20-EMA). The ascending triangle formation trend provides support of approximately $ 18,200, with short-term sales likely to push prices to the next support level at $ 17,500.
BTC / USD 4 hour chart. Source: TradingView
The weekly chart has also formed a hanging man’s candlestick pattern following last week’s panic sale. The emergence of the bearish reversal signal suggests that bulls will likely struggle to break above the $ 19,500 resistance level.
BTC / USD weekly chart. Source: TradingView
‘Typical price reversal’
Chain data from Santiment’s crypto analytics platform reinforces the likelihood of a short-term fall in the price of Bitcoin.
According to the company, Bitcoin’s rebound to prices above $ 19k coincided with a spike in the number of dormant coins moved to suggest sell-in pressure.
“Amid Bitcoin returns above $ 19k this weekend, our data identified the most used token token in 40 days. This indicates that large amounts of the previously dormant $ BTC have just been moved. Typically, price reversals occur following these spikes, and this coincided with the latest local price peak just above $ 19.3k 10 hours ago. “