Bitcoin saw a massive rally last night, allowing it to hit new all-time highs above $29,000.
The cryptocurrency encountered serious selling pressure here, slowing its rise and sending it falling back towards $28,000.
It appears to be finding some support here, but it remains unclear how long this will last.
One analyst has commented on this in a recent tweet, commenting that he is bracing for a total trend reversal that will see BTC fall back towards $20,000.
He comments on how the time and distance of each move higher is getting smaller and smaller as BTC climbs higher, which in his eyes is a sign of exhaustion.
The selling pressure here was significant and slowed Bitcoin Champion ascent considerably. Since then, the coin has continued to drift lower.
Bitcoin is currently sliding back down after breaking above its all-time highs last night.
The strength the cryptocurrency has seen recently cannot be underestimated as it has added several thousand dollars to its price every week.
One trader believes there is a strong possibility that this uptrend will stall in the near future, followed by a decline towards $20,000.
He points to some signs of exhaustion to justify this notion.
Can bitcoin hold above $29,000?
Bitcoin experienced a wild rally yesterday afternoon, pushing the price above $29,000 and setting new all-time highs once again.
Where the cryptocurrency goes next will likely depend on whether the bulls can keep the price above $28,000 in the coming days and turn this former resistance zone into support.
Trader claims a fall to $20,000 is imminent
A trader writes in a tweet that he believes a move down towards $20,000 is imminent in the near future.
He comments that Bitcoin’s recoveries have become weaker and shorter as it approaches $30,000 – which is a sign of bull exhaustion. The trader:
„The time and distance of each $BTC move is getting smaller. Less consolidation and less upward movement. Markets can be like a pendulum and that will swing the other way. The theory remains the same. We will see low 20s“
The coming days should provide some serious insights into where the whole market is heading in the medium term.
A continuation of this ongoing downtrend could mark Bitcoin’s 24-hour highs as a local top and a sign that a downtrend is imminent in the near future.