Bitcoin experienced a sharp decline overnight, which occurred after a period of immense strength.
This brought BTC to $18,000, which has long been a strong support for the crypto currency.
Where Bitcoin goes next will depend largely on whether it can hold above the support that exists at this important price level.
One trader points out how aggressively this bear market was bought – indicating that BitQT may be able to see much more upside potential in the near future.
Bitcoin has shown some signs of immense strength in recent days and weeks, with buyers trying to take control of price actions as the bears have been showing the first signs of vitality for weeks.
The coming days should provide some serious insight into where the entire market is headed next.
One trader now notes that the reaction of the crypto currency to this sell-off indicates that a long-term price floor is being created.
He believes this will allow BTC to recover and continue its rise, „undoing“ the first wave of over-eager buyers.
Bitcoin experiences first major sell-off, reaching $19,000
In the course of Bitcoin’s upward trend over several months, the crypto currency has shown some immense signs of strength and experienced only fleeting sell-offs, each of which was followed by an upward trend.
This recent slump does not appear to be an exception to this trend – the BTC price climbed to $17,650 before facing a „V-shaped“ recovery that has resulted in a significant further upward trend.
The asset is now in the process of recouping the gains that were lost due to this decline. And BTC may be able to make further gains in the near future.
Analyst: Bitcoin has reached a new price floor
A trader writes in a tweet: The reaction of the crypto currency to this latest sell-off indicates that a new price floor has been reached that could allow BTC to rise significantly higher.
He now observes a movement upwards and comments that the aggressive buying pressure during this recent rally was promising.
„What you should be looking at now is how aggressively this dip is being bought. I think the floor is passively asserting itself. First, overzealous buyers are ruined. This is a sign of that.“
The trends of the next hours might supply a view of it, how Bitcoin and the aggregated crypto markets will behave in the current week.