Bitcoin (BTC) experienced a sharp selloff yesterday evening that led its price to dip as low as $8,200 before it found a significant amount of buying pressure that sparked a sharp movement up to highs of $8,500.
BTC now appears to be trading just beneath a critical resistance level that is halting it from climber higher, and a break above this level could spark a massive upwards movement.
It is important to note that the cryptocurrency has struggled to garner any decisive momentum in the time since it was rejected at highs of $9,200.
Bitcoin Bounces from Intraday Lows as Bulls Fight to Maintain Control
At the time of writing, Bitcoin is trading up 1.6% at its current price of $8,500, which marks a notable climb from its daily lows of $8,200.
These lows were set late yesterday and marked an extension of the bearish momentum the crypto garnered after it broke down from its consolidation range at $8,600.
It does appear that bulls are currently making a bid to reclaim this level, although it is important to note that BTC is currently hovering just beneath a key resistance level that could prove to be challenging for bulls to surmount.
Satoshi Flipper, a prominent cryptocurrency analyst on Twitter, explained in a tweet from earlier today that this is a “critical resistance” level for Bitcoin, and that a break above this level could lead to a violent upwards movement to $9,000.
“BTC at critical resistance. Slightly front run 8100 as expected, either way, this is a classic retest playing out. Bust through the 8500-8600 level and we’ll see 9k soon enough,” he said while pointing to the below chart.
$BTC at critical resistance.
Slightly front run 8100 as expected, either way, this is a classic retest playing out.
Bust through the 8500-8600 level and we’ll see 9k soon enough…. pic.twitter.com/u5afctKl1h
— Satoshi Flipper (@SatoshiFlipper) January 24, 2020
BTC Could Be Over $9,000 By The End of This Weekend
As for when Bitcoin could break above this key near-term resistance level, it is important to note that its ability to continue tapping the resistance at $8,500 without incurring any swift rejection is a bullish sign.
Satoshi Flipper further went on to note in a later tweet that he believes this next upwards movement that leads BTC towards or above $9,000 will occur today or this weekend.
“BTC keeps tagging the resistance. Can only keep knocking on the door so long before breaking through. Today or this weekend IMO,” he explained.
$BTC keeps tagging the resistance.
Can only keep knocking on the door so long before breaking through.
Today or this weekend IMO.
— Satoshi Flipper (@SatoshiFlipper) January 24, 2020
Unless bears step up to the plate and catalyze a massive influx of selling pressure, it does appear that this latest drop to the lower-$8,000 region was simply a blip that will be followed by further upwards momentum.
Featured image from Shutterstock.