Bitcoin’s Market Structure Shapes Up as Bulls Defend Critical Price Level
- Bitcoin is currently expressing some immense signs of strength as its price trades above $10,600
- This marks a decisive break above the $10,500 resistance level that was previously suppressing its price action
- Because bulls were able to break above this effort this morning, it does appear that the benchmark cryptocurrency may be well-positioned to see further upside in the coming few hours and days
- The next region of interest for bulls sits around $11,000, as a firm break above this level would be extremely bullish
- One analyst is pointing to a variety of factors that indicate BTC may be poised for a move up to this price region
Bitcoin and the entire crypto market are showing signs of strength today. This comes close on the heels of some intense weakness that was seen last week, during which time bears attacked the $9,900 to $10,000 support region on multiple occasions.
The strong defense of this level helped bulls lay the groundwork for a move higher, although they faced resistance at $10,500 on a few occasions.
This resistance has since been shattered, and analysts are now looking towards a move significantly higher in the near-term.
One trader is specifically pointing to a few technical factors that suggest BTC is well-positioned to see further upside.
Bitcoin Shrugs Off Recent Bearishness, Pushes Towards $11,000
At the time of writing, Bitcoin is trading up just under 3% at its current price of $10,630. This is around the price at which it had previously faced some intense selling pressure.
One factor that may have perpetuated this bullish movement higher was a green day in the U.S. stock market, with all of the benchmark indices clocking some notable gains today following a week of turbulence.
If equities begin stabilizing in the near-term, there’s a high likelihood that BTC will see further upside.
Analyst: These Technical Factors Bode Well for BTC
While speaking about Bitcoin’s current technical outlook, one analyst pointed to a break above a descending trendline, coupled with a strong bounce from its crucial support level, as two factors that may bolster its mid-term outlook.
“Looking relatively promising as: – Price ‘bounced’ from cataclysmic support – Above diagonal resistance,” he explained.
Image Courtesy of Teddy. Chart via TradingView.
How Bitcoin and the rest of the crypto market trends in the near-term will likely depend mostly on the stock market.
That being said, a break above $11,000 could be all that is needed for the crypto to spark an uptrend that allows it to set fresh yearly highs.
Featured image from Unsplash. Charts from TradingView.