Bitcoin has been caught within the throes of intense turbulence over the past day, with the cryptocurrency incurring a violent selloff yesterday that sent it reeling from $10,200 to lows of $9,200.
In the time since this capitulatory drop, Bitcoin has been able to climb higher, and its early-morning volatility seems to suggest that bulls and bears are currently engaged in an intense battle for control over the cryptocurrency.
In the near-term, one top trader is noting that BTC is currently hovering around the lower boundary of a multi-month ascending channel that has been guiding its 2020 uptrend, with a break below this potentially sparking massive losses.
Bitcoin Incurs Early-Morning Volatility as Bears Fight Bulls for Control
At the time of writing, Bitcoin is trading down just over 5% at its current price of $9,625, which marks a notable decline from daily highs of $10,200 that were set prior to the flash crash.
In the time since this intense selloff, Bitcoin has remained fairly stable around the $9,600 region, although this morning the cryptocurrency’s bears did attempt to catalyze another selloff when they pushed BTC to lows of $9,400.
Bulls, however, were once again able to step up and absorb this selling pressure, subsequently leading the crypto to rally back up to its current prices.
UB, a popular cryptocurrency trader on Twitter, explained in a recent tweet that the bullish reaction to this sharp and fleeting dip just minutes ago led him to “market smash long” in an anticipation of an imminent movement up towards $9,900.
“BTC – Market smashed a long at 550 after I saw the LTF reaction from taking the lows. I’m more confident in a long position now that the lows were taken before a bart back up. High $9.9s is still Key Resistance,” he said.
$BTC - Market smashed a long at 550 after I saw the LTF reaction from taking the lows.— UB (@CryptoUB) February 20, 2020
I'm more confident in a long position now that the lows were taken before a bart back up.
High $9.9s is still Key Resistance.#Bitcoin pic.twitter.com/sXmzDgNPGE
Bulls Need to Defend This Level or Massive Losses Could be Imminent
Teddy, another popular cryptocurrency analyst on Twitter, explained in a recent tweet that Bitcoin is currently hovering around the lower boundary of an ascending channel that it has been caught within throughout the 2020 bull market, and that it is imperative that buyers continue defending against a drop below this level.
“BTC: This is exactly where bulls have to sell organs and unnecessary family members to long. This channel has been intact since 6k – bulls do not want to see a close below it,” he explained.
#BITCOIN | $BTC— TEDDY (₿) (@TeddyCleps) February 20, 2020
This is exactly where bulls have to sell organs and unnecessary family members to long.
This channel has been intact since 6k - bulls do not want to see a close below it. pic.twitter.com/G0NsO9rM4d
If bulls are able to garner some upwards momentum following the recent bounce at around $9,400, it is probable that the crypto will see some further short-term gains.