BTC shocked the finance world yesterday after setting a new ATH above $19,800 on top exchanges such as Binance and Bitstamp.
As we reported, the bears immediately attempted to fade this move and momentarily gained control over the coin’s price action. The selling pressure from BTC setting a new price record caused an intense rejection, sending the flagship crypto as low as $18,300.
Luckily, the bulls stepped up and reversed it’s downward momentum seen overnight. The BTCUSD price soared once again to the lower-$1900s, as buyers erased nearly all of the losses that came about after the rejection.
This “V-shaped recovery” that saw the bulls target a retest of the $19,800 resistance speaks to Bitcoin’s underlying strength. It also highlights the underlying weakness that plagues the bears at the moment, rendering them incapable of gaining any substantial control over the king coin’s price action.
That said, the resistance around the $19,400 zone is still strong. With so many investors excited about the ATH extreme FOMO, profit-taking is causing volatility in the BTC market to kick into overdrive, resulting in more than $1,000 intraday moves.
At the time of writing, the world’s leading cryptocurrency is down 0.39% at its current price of $18,863. However, with volatility high and prices whirling out of control, it’s tough to predict the next trading session’s BTC price.
BTCUSD Chart by TradingView
BTC Sends Shockwaves Across the Finance World
Yesterday’s news that BTC had hit a new all-time high sparked an influx of retail interest in the benchmark cryptocurrency as news outlets worldwide reported on the milestone.
Bitcoin trended on Twitter during the strong surge to an ATH, with many influential figures and ordinary folks expressing their excitement over the epic achievement.
The FOMO also spread to institutional players, who are increasingly taking an interest in the digital asset class as a viable alternative to gold.
As BTC surged to new heights, AllianceBernstein, a global investment firm, released a research note acknowledging that the world’s leading cryptocurrency has a role in asset allocation.
Inigo Fraser Jenkins, co-head of the portfolio strategy Bernstein Research, noted that Bitcoin should play a role in investors’ portfolios, despite the firm’s earlier apprehensions about the digital asset class.
The Latest Bitcoin Bear Trap
Price action is moving so quickly in the BTC market as buying pressure from the latest FOMO as the world learns of the new ATH clashes with profit-taking from the whales.
After the new price record was set yesterday, BTC prices tanked sharply in a matter of hours, shaving over $1,500 off the top digital coin price.
This latest bear-trap that sent BTC prices as low as $18,300 could be fundamentally healthy, as it has reset sentiment and shaken out over-leveraged long positions. Therefore, the rejection near the recent ATH could indicate that further upside to $20k is imminent in the near-term.