Bitcoin has seen some brutal price action throughout the morning, with overleveraged long positions being shaken out with a brief dip down to $15,700, while those panic shorting were then liquidated by a sharp rebound.
This price action has allowed the cryptocurrency to begin inching higher and moving to retest its $16,000 support level, which could once again act as slight resistance.
This level has been acting as support for the past few days, but a continued bout of trading below it could strike a heavy blow to bulls.
BTC’s recent price action seen throughout the past few days and weeks has led to the formation of a parabolic trendline, elucidating the overwhelming control that buyers have had over the benchmark cryptocurrency’s price action as of late.
However, this trendline is now being tested, and whether or not buyers can defend it should provide some serious insights into the cryptocurrency’s near-term outlook.
A break below this level could confirm