Bitcoin Prone to Seeing Downside as It Trades Below Key Level
- Bitcoin and the aggregated crypto market are struggling to extend the mid-term uptrend that has driven them higher over the past few weeks
- This has come about as BTC pushes up against insurmountable resistance at $12,000 – a level that it has been rejected at on multiple occasions
- Analysts are now noting that it may require a daily close above $11,900 for it to see further upside that sends it past this price level
- There are some positive signs that BTC is gearing up for a movement towards this level, including its recent ability to set “higher lows.”
Bitcoin is currently stuck in an unrelenting consolidation phase between $11,200 and $12,000.
Both of these levels have been cemented as strong support and resistance, with both buyers and sellers struggling to break this range.
There’s no denying that Bitcoin’s mid-term trend remains firmly in the hands of bulls, but the stalling momentum it has seen seems to indicate that bears are trying to take back control.
One analyst is pointing to its ability to set “higher lows” on each dip as a positive sign.
This will need to lead the crypto to post a daily close above $11,900 for it to see any significantly further upside in the near-term.
Bitcoin Struggles to Maintain Mid-Term Uptrend
Starting in May, Bitcoin faced a multi-month bout of consolidation between $9,000 and $10,500.
This range eventually narrowed to between $9,000 and $9,300, with the crypto’s price coiling here.
The break above this macro trading range is what helped propel it up to its current price levels – sparking a mid-term uptrend.
This trend is now stalling, however, as bulls struggle to break the resistance that sits at $12,000.
One trader is pointing to Bitcoin’s ability to set higher lows during each dip as a positive sign.
He believes this means the crypto will run towards $11,950.
“Bitcoin – This is what you want to see. Rejection at first level at $11,600-11,700 after which a new HL is structured. Seems likely that we’ll be running towards $11,850-11,950.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Here’s the Crucial Level Analysts Think BTC Needs to Close Above
“BTC update: Another good 4-hr close above support. Price came down, retested and has bounced – will look for continuation to the upside. Still want to close above $11,900 on the daily,” he explained.
Image Courtesy of Josh Rager. Chart via TradingView.
Unless Bitcoin breaks below $11,200 for a sustained period, its mid-term uptrend likely gives bulls an edge over bears.
Featured image from Unsplash. Charts from TradingView.