Bitcoin Pullback At These Levels Is Healthy: Analyst Opinion

A Bitcoin pullback at these levels of $17,400 could actually be healthy for Bitcoin as it could prepare it for another rally in the near-term. One trader noted that he expects BTC to start a cooldown for the rest of the year but let’s read more in today’s Bitcoin news.

Bitcoin and the rest of the aggregated crypto market were consolidating over the past few days and weeks since the recent selloff didn’t strike a huge blow to the markets’ structure. Where will the entire market trend next will mostly depend on whether or not the buyers or sellers will take full control over Bitcoin’s price action. The entire crypto market was caught in an intense bout of sideways trading in the past few days. The rejection at $18,600 hit Bitcoin’s momentum hard and showed that the rally came overheated. The rejection sent BTC spiraling to $17,400 from which it is in a major rebound. Where will the market tend next will depend on whether BTC can gain a strong momentum above $18,000.

One trader doesn’t think that a Bitcoin pullback here could eventually lead to a massive near-term momentum as he was closely watching for a bout of consolidation over the end of the year right before starting a new leg higher in 2021. At the time of writing, BTC was trading up just at 1% reaching a price of $17,990. This is a little lower than the crucial resistance level which analysts were watching over for the past few days and weeks. The level became a pivotal level for the cryptocurrency as previous breaks above this level, sent BTC skyrocketing higher.

The upcoming few days should provide more insight into how important this level for the benchmark cryptocurrency is in the near-term outlook. One analyst even explained in a recent tweet that he is expecting BTC to see some “healthy consolidation in the near-term.” He continued:

 “Even though I am bullish in the macro and longterm, and I think the price will easily break above ATH next year, I think that a pullback would be healthy, just like in any traded market. It’s very important that we realize just how far we have come in such a short period of time.”

Unless BTC rallies past $18,000 and closes down above this level on a higher time frame close, there’s a chance that it will kick off a bout of consolidation.