After the price reached around $18,370 on Bitstamp on December 14, BTC/USD is now giving back its gains, prompting traders to pay attention to where the next reversal might occur.
Opinions differ – some warn that the levels of support that bulls must hold are already deteriorating, while others believe that recent events are just another point on the way to much lower levels.
Cointelegraph takes a look at what some popular commentators are looking for next when it comes to Bitcoin’s short-term price action.
Michaël van de Poppe: He should keep $17,200 for $20,000
After describing the overall market reaction to the Fed as “relatively dull” this week, Michael Van de Poppe, CEO and founder of trading firm Eight, says support levels are already close to BTC/USD.
With the pair down close to $1,000 from local highs at the time of writing, Van de Poppe was eyeing $17,200 as a line in the sand for the bulls.
After winnings, the higher bottom (HL) could be on the cards next. To the upside, bulls holding support may offer a Santa Claus advance that includes a trip past the $20,000 mark.
“Overall, we will have some consolidation on Bitcoin, looking for an HL,” he told his Twitter followers.
“The area to hold remains the same; $17.2-17.4k. If we do that, the path will open towards $20.5k in 2-4 weeks.”
BTC/USD last traded above $20,000 before the FTX disaster sent the entire cryptocurrency market down 25% or more.
Daan Crypto Trades: The market wants to ‘take everyone out’
Popular trader and analytics account Daan Crypto Trades says Bitcoin has its ups and downs in liquidity.
Having highlighted $17,600 – Bitcoin’s lowest since June this year – as an important level for the bulls, BTC/USD took a few hours to head lower.
As such, it was clear that both long and short trades could be penalized in short time frames.
“Jokes aside, the market is on its way to taking everyone out on both sides right now,” Dan wrote in a subsequent tweet.
“It is a good idea to note all the untapped highs and lows to see where the price might want to go next.”
This untapped liquidity has extended to just over $17,000 at the time of writing, while to the upside, $17,750 and above is selling pressure.
Daan previously identified $18,200 as an important level to head towards support in case the sustained uptrend returns.
Annotated BTC/USD chart. Source: Daan Crypto Trades / Twitter
Crypto Tony: $17,300 “to be hit”
Meanwhile, fellow Crypto trader Tony said he assumes $17,300 will reappear on the day.
Related: Bitcoin Market Drop 70% Kills Bitcoin ‘Tourists’ As Screams Buy Metric
“The Hedge Short is working fine and the stop loss on Bitcoin ex-longs will hit at $17,300 no doubt today. He only took partial profits on this batch, but not much. He explained to his followers.
Another tweet added that BTC/USD needs to see additional buying interest for a fresh rally.
As Cointelegraph reported, there is plenty of bearish action for bitcoin price action, including that of Il Capo of Crypto, who still believes that mass capitulation is yet to come.
In the long run, Crypto Tony also refuses to rule out diving into up to $10,000.
BTC/USD is trading around $17,500 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView, before trading starts on Wall Street.