The Bitcoin bulls are back in charge, driving the crypto price back up after Bitcoin crashed more than 20% down to the $9,975 support region.
However, it is not all blue skies for the Biggest cryptocurrency yet as Bitcoin still needs to break through the $11,243 key resistance level in the coming days if it wants to continue this current bullish run.
This $11,243 region is important because it has served as strong support for Bitcoin in the past and there is a very high likelihood seller will see that price level as the best launchpad to mount a resistance against the Bitcoin bulls.
Should You Be Worried This A Bull Trap?
If you are currently holding a buy position on Bitcoin, then Yes you should be worried, because although the Bitcoin price is still trending higher, we are currently experiencing a rapid decline in the bullish trading volume.
This fading bullish volume indicates weakness in the buying power of Bitcoin and gives traders a strong hint that we might see a price reversal and crash back down soon if more Bitcoin buyers don’t step in soon.
The most important level I am watching to see this sell-off kick off from is the $11,243 key resistance.
If that resistance level holds, we might see more sellers begin entering the market and pushing Bitcoin back down. There is a very high likelihood this sell-off could push the Bitcoin price below the previous lows of $9,975.
However, a break of this $11,243 resistance region will only see the Bitcoin price become more bullish in the short term. The next level to watch for renewed selling pressure if the $11,243 price region gives way would be the $12,097 resistance region.
This $12,097 resistance as also served as a key level in the past and might come into play again if the Bitcoin bulls manage to push the price that high. And a break of that resistance could see Bitcoin making a new high and resuming the bullish trend.
But for this to happen, we need to see the Bitcoin bullish momentum pick up soon. We also need to see the Bullish volume pick up too, indicating the growing strength of buyers.
We are also seeing a lot of positive fundamentals coming out for Bitcoin. This stream of good news means Bitcoin as the potential of resuming the bullish trend. But until it does that, the best thing to do right now is to stand aside and wait.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.