Bitcoin Was Just Rejected at $7,500, and It Means Price Could See Bigger Pullback

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Over the past few hours, Bitcoin (BTC) has shown strength rather uncharacteristic to its performance over the past few weeks, surging to $7,520 just an hour or two ago. But since then, the price of the leading cryptocurrency has retreated, returning to $7,350 after bulls failed to break through $7,500.

Analysts are currently divided over what this price action means for the crypto market: some say that it is indicative of a bullish breakout to the high-$7,000s or maybe even $8,000s in the coming days, others believe that the latest rejection is a precursor to a further drawdown.

Bitcoin Price Poised to Break Higher?

Satoshi Flipper noted in the wake of this move that crossing $7,500 perfected an inverse head and shoulders neckline breakout, implying that the price has upside into $7,800 and potentially beyond. Some analysts say that the inverse head and shoulders bottomed depicted by analysts like the aforementioned could mark a macro bottom for the recent bear market (if you can call it that).

Analyst Zoran Kole echoed this, remarking that Bitcoin is likely to burst past the $7,500 resistance due to the fact that liquidity has dried up in that range, setting the stage for a rally into a “new range.” While Kole didn’t tip his hand as to where he thinks this “new range” will lie, the consensus is that the leading cryptocurrency will enter the high-$7,000s.

Not So Fast, Analysts Say As BTC Fails to Top $7,500

The thing is, despite the neckline breakout and the assertions by analysts like Kole that the key $7,500 wall was poised to fall, BTC was rejected at that level, plunging faster than it was trending higher.

Bitcoin’s inability to break past $7,500 resulted in a bearish technical signal on the 12-hour chart: the lower band of the Ichimoku Cloud indicator, which tracks trends and key price points, held as resistance for the second time in a few days, implying that sellers are in control and prices could retreat further.

This bearish sentiment has been echoed by FilbFilb, a prominent technical analyst who called the decline to the $6,000s back in October.

He suggested in a recent message published to his Telegram channel that Bitcoin’s rejection at $7,500, which he predicted yesterday, is a precursor to likely one final bear market pullback before a return to a bull trend. This pullback, his analysis suggests, will bring BTC back to $6,800 — 7.5% lower than the current price of $7,350 — by the first week of January.

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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO , and should not be attributed to, CriptomonedaseICO .

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