Bitcoin Rebounds Off of Key Support Level as Analysts Eye Upside

• Bitcoin saw a sharp overnight decline that came about following a period of immense strength
• This sent the token reeling down to the $18,000 level, which has long been strong support for the cryptocurrency
• Where it trends next will depend largely on whether or not it can continue holding above the support it has found at this key price level
• One trader is pointing to just how aggressively this dip was bought, which indicates that it may be positioned to see significantly further near-term upside
• Where it trends in the days and weeks ahead will depend largely on its upcoming weekly candle close

Bitcoin has been flashing some signs of immense strength throughout the past few days and weeks, with buyers trying to take control of its price action as bears show their first signs of vitality seen in weeks.

The coming few days should provide some serious insights into where the entire market will trend next.

One trader is now noting that the cryptocurrency’s reaction to this selloff indicates that a long-term price floor is being created.

He believes that this will allow it to rebound and continue its ascent, with the first wave of overzealous buyers getting “wrecked.”

Bitcoin Sees First Major Selloff Since Reaching $19,000

Throughout the course of Bitcoin’s multi-month uptrend, the cryptocurrency has been showing some immense signs of strength, only witnessing a few fleeting selloffs that were followed by upside.

This latest dip doesn’t appear to be an exception to this trend, as BTC’s price reeled as low as $17,650 before facing a “V-shaped” recovery that led to it seeing significantly further upside.

It is now in the process of clawing back the gains that were lost due to this dip, and it may be positioned to see further upside in the near-term.

Analyst Claims BTC has Made a New Price Floor

One trader explained in a recent tweet that the cryptocurrency’s reaction to this recent selloff indicates that a new price floor has been established, which may allow it to climb significantly higher.

He is now watching for a move higher, noting that the aggressive buying pressure throughout this latest upswing was promising.

“What you want to pay attention to now is how aggressively this dip is bought. I think the floor gets established passively. First overzealous buyers get wrecked. Here is a sign of that.”

How Bitcoin trends tonight should provide insight into where Bitcoin will move throughout the week ahead, as its weekly candle close is just a handful of hours away.

Featured image from Unsplash.
Price action from TradingView.