The risk of a strong rejection in the mid-to-upper $19,000 of Bitcoin price is still significant but buy signal appear
Bitcoin price is quickly navigating back to all-time highs. This happened after BTC faced some big waves during the past week. Every rejection at $ 19,800 makes great sense for the cryptocurrency, but it could set lower levels. This is a bullish sign that shows selling pressure at this price level is starting to subside.
Bitcoin price is near major resistance as the uptrend continues
At press time, Bitcoin is trading up just under 1% at its current price of $ 19,451. One more rejection here could deal a blow to the power of the cryptocurrency, but as long as the drop leads to another V-shaped recovery, it remains in the control of the bulls.
According to popular crypto trader SalsaTekila, he is waiting for a move towards $ 20,000 before buying back his Bitcoin. He also emphasized that the risk of strong rejection in the region from medium to higher $ 19,000 is still significant.
He stated:
“Short hedged my $BTC exposure, locked a price of $19’240. I don’t know what comes next. I want to be in cash until we nibble $20k. I’ll market buy into it and lose 750$ per coin if need be, worth the protection. Not net short, just want to be in cash from here. Still scalping.”
The way Bitcoin responds to this region’s testing in the coming hours or days will provide investors and analysts with extensive insights into its medium-term outlook.
Here’s a closer look at the significance of the signal
Bitcoin is the best investment of 2020, up more than 150% so far. Bitcoin’s most profitable buy signal ever just triggered, suggesting profits from this year are just the start of what’s to come.
According to Bitcoin expert Charles Edwards, the key indicator is the Hash Ribbons turn the hash rate and mining difficult into moving averages that can be used to signal when to buy, and when miners are capitulating.
That buy signal just triggered and with it happening just below $ 20,000, the recent consolidation could be the bulls building strength to break through the resistance.
According to Edwards, the “blue dot” buy signal just appeared on the daily timeframe. But this is notable particularly because the Hash Ribbons just so happen to be Bitcoin’s most profitable buy signal.
The chart below shows how well it has performed since Bitcoin bottomed out in 2018, which is the first major buy signal since its 2017 peak. There are more signals throughout the past two years. which each leads to a strong price increase.
The trigger hasn’t yet appeared on weekly timeframes which have in the past proven profitable | Source: TradingView
With a buy signal triggered in the past leading to a 5800% and 3600% return happening with Bitcoin at an all-time high, the target of this current signal could be its highest gain.
You can see the BTC price here.
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