Bitcoin has seen some incredibly strong price action throughout the past few days and weeks, with the selling pressure seen at its key resistance levels not slowing it down Overnight it was able to rally up towards its previous all-time highs, stopping just short of them when bears stepped up the selling pressure at $19,500 The rejection here was quite intense and caused it to briefly break below $19,000 It does appear to be entering yet another consolidation phase, which could mean it will see a prolonged bout of sideways trading in the near-term One trader is noting that although the cryptocurrency is showing signs of being overheated in the short-term based on multiple metrics, the derivatives market is no longer in control

Bitcoin and the entire crypto market are showing some immense signs of strength. Bulls appear to be in full control, but bears are trying to gain some control following the cryptocurrency’s recent $19,500 rejection.

Sellers have pushed the crypto as low as $18,800, with the buying pressure here being fairly intense.

If it continues holding strong in the near-term, there’s a strong possibility that this level will help catalyze a rebound past the $19,000 level, ultimately leading it to see further upside.

One analyst is noting that although the crypto shows signs of being overheated, the fact that the spot market controls its price action indicates that these signs may be wholly irrelevant.

At the time of writing, Bitcoin is trading down marginally at its current price of $18,950. This is a hair below the key $19,000 level that has been acting as resistance.

Any sustained decline below this level could prove dire for BTC, potentially causing it to see further near-term losses.

This ongoing dip comes shortly after it tested $19,500, just a few hundred dollars below its previous all-time high.

Typically, the derivatives market controls Bitcoin’s price action, which makes using indicators like funding rates quite useful.

During this rally, however, the spot market is in control, which largely makes these indicators useless at the moment. As one analyst noted:

“It’s kinda crazy, but this time is actually different. Derivs are clearly overheated, but the spot market is in control right now.”

How Bitcoin reacts to $19,000 heading into its daily close should provide some serious insights into where the entire market will trend in the days and weeks ahead.

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