- Bitcoin has entered a consolidation phase within the lower-$11,000 region
- This comes shortly after bears stepped up and catalyzed a swift rejection at $12,000 this past weekend
- The cryptocurrency is now flashing some signs of weakness as it hovers above its key support at $11,000
- Bulls have been able to hold it above multiple crucial levels throughout the past couple of days
- This is leading some traders to remain firmly bullish on the benchmark cryptocurrency’s near-term outlook.
Bitcoin and the aggregated cryptocurrency market are currently consolidating after bearing witness to some explosive volatility this past Saturday.
Bitcoin, after hovering in the lower-$11,000 region, rallied as high as $12,000 in a matter of minutes following Ethereum’s explosive surge to $415.
These highs were not hit for long, however, as the selling pressure seen here ramped up and sent both BTC and ETH reeling lower.
Bulls were able to guard against a decline beneath $11,000, and it has been trading sideways ever since.
It is important to note that the crypto has remained above multiple key levels, including its “Ichimoku Cloud” and its crucial weekly support at $10,500.
Bitcoin Enters New Consolidation Phase Right Above Ichimoku Cloud Support
At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,250. This is around the price it has been trading at since the $12,000 rejection.
Bulls may soon move to catalyze some further upside, as there isn’t much resistance between BTC’s current price and $11,700 – which is a historical resistance level.
If this level is broken above in the near-term, it could provide the crypto with a boost to its macro market structure that allows it to climb significantly higher.
One factor also working on buyers’ favor is Bitcoin’s ability to remain above its Ichimoku Cloud.
While speaking about this, an analyst noted that while it remains above its monthly cloud, there isn’t enough data to understand what a break below it will entail.
“1M BTC: back above the Cloud for now… not really enough data for Cloud on this TF,” he explained.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
Analyst: BTC Remains Bull Biased as Long as It Holds Above $10,500
The Ichimoku Cloud isn’t the only support level that Bitcoin is holding above.
Another trader explained that the $10,500 region is crucial for bulls to defend, as BTC remains bullish as long as it trades above this level.
“BTC most important level relative to the recent weekend selloff: $10.5k 1W S/R level,” he explained.
Image Courtesy of HornHairs. Chart via TradingView.
He further notes that a high time frame close beneath this level may be enough to invalidate its macro strength.
Featured image from Unsplash. Charts from TradingView.