Bitcoin is showing some signs of strength today as its buyers try to turn $16,000 into a support level.
Although it has not yet been rejected at this level, it has also failed to establish itself firmly above that level.
An on-chain analyst now expects Bitcoin’s ongoing rally to expand significantly before buyers encounter strong resistance.
He is paying particular attention to an increase to $24,000 and comments that this could be the point at which the bulls finally lose the ground under their feet and the BTC sees a sharp retreat.
Bitcoin is currently in the process of breaking through the $16,000 resistance mark, which is proving somewhat difficult as buyers and sellers continue to battle for control of this key mark.
Should BTC break through $16K permanently, further substantial gains could be made in the coming days and weeks.
One trader now notes that numerous on-chain indicators suggest that Bitcoin is poised for recovery in the days and weeks ahead.
However, he believes that the 350-day EMA of the crypto currency – which stands at around $24,000 – will prove to be serious resistance and potentially trigger a strong sell-off.
Bitcoin rises, bulls target $16,000
At the time of writing, Bitcoin is traded at a price of USD 16,200. Should BTC be rejected here again, it could face a sharp downtrend that would cut deep into its recent gains.
However, a sustained break above this level would be incredibly positive and could potentially help the asset to new all-time highs.
On-Chain Analysts See New Upward Trend Coming
An on-chain analyst writes in a tweet that he is targeting Bitcoin’s 350-day EMA as a value that BTC could tap before it falls any lower.
„At the moment, so many indicators for BTC are bullish that I expect a price recovery in the coming days and weeks. However, when the price reaches 350dma x 2, I expect (red line) a correction, as we have seen several times in 2016/17, using these levels as strong resistance“.
According to the analyst, this level is USD 22-24,000, which makes it his short-term upside target.
„Based on current trends, I expect the 350dma x 2 price to approach $22-24,000. Perhaps we will have to correct there for a while because FOMO has crossed the ATH?“
