Bitcoin Rally Faces Resistance: Trader Warns of Imminent Pullback
In a tweet accompanied by a technical chart, Sherpa highlighted multiple resistance zones between $106,000 and $109,000, stating: Pullback comes soon at 1 of these levels IMO.
The chart reflects a significant rally in BTCs price but shows potential reversal zones from earlier trading ranges. Volume spikes during recent upward moves indicate increasing volatility, typically a precursor to price corrections.
Sherpa emphasized the market remains a buy the dip environment, suggesting any correction could present another opportunity for accumulation rather than a signal of trend reversal. Stay on your toes, he advised, noting the uncertainty around how deep or exactly where the pullback might occur.
For traders and investors, this analysis suggests caution near resistance but encourages maintaining a bullish outlook, especially for long-term holders.
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Text source: Coindoo
