Story by: Cole Petersen
Bitcoin and the aggregated crypto market have seen an intense overnight selloff, which comes close on the heels of the bearishness that the markets experienced over the weekend when BTC plummeted below $10,000 in a violent movement.
This downwards momentum, however, may not last long, as one prominent analyst is noting that it is not a high time frame trend change, and that bears are currently fighting against oversold conditions.
If this possibility proves to be valid, then BTC could soon see a sharp upwards movement that is fueled by overleveraged short positions, which could lead the crypto back into the coveted five-figure price region.
Bitcoin Plunges to Key Support as Bears Attempt to Alter Its Market Structure
In the near-term, however, BTC may start seeing some further upwards momentum, as the oversold conditions on lower time frames show that bears are fighting against a firm uptrend that still remains intact.
Mr. Anderson, a prominent cryptocurrency analyst, spoke about this bullish possibility in a recent tweet, in which he claims that a Countertrend Algorithm shows that this ongoing pullback is both healthy and to be expected.
“BTC Countertrend: This High Time Frame (Daily) Countertrend Algo shows us that a pullback was certainly predictable and due. However, it is likely to be short lived (not a HTF trend change) since Bears need to work fast to avoid a series of oversold conditions on low time frames,” he explained.
This High Time Frame (Daily) Countertrend Algo shows us that a pullback was certainly predictable and due
However, it is likely to be short lived (not a HTF trend change) since Bears need to work fast to avoid a series of oversold conditions on low time frames
Holding Above $9,500 Could Allow BTC to Surge to $10,200
HornHairs, another prominent trader on Twitter, spoke about this level, explaining that a firm defense of it could allow BTC to rally up to $10,200.
“BTC long: Last attempts at longing around these levels. Will continue to punt until 9.5k breaks on a daily close. Playing the trend until it breaks. Another sweep, this time into previous consolidation highs,” he said while pointing to the chart seen below.
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