Here’s Why Bitcoin is Poised to Hit $11,500 Following Overnight Rally
- Bitcoin and the entire cryptocurrency market witnessed an intense upswing overnight, with BTC and Ethereum outshining altcoins for the first time in many weeks
- This sharp upwards movement came about suddenly, and for a brief moment allowed Bitcoin to shatter the resistance it previously faced at $10,000
- The selling pressure above this level was heavy, however, and caused the cryptocurrency’s price to decline after it hit highs of $10,200
- Despite the rejection here, analysts are noting that its technical outlook remains strong
- Some are even noting that a move up towards $11,500 is in the cards
Bitcoin incurred a massive influx of buying pressure that allowed it to surge from daily lows of $9,600 to highs of $10,200.
At this point, it was met with significant selling pressure that slowed its ascent and caused it to decline back into the upper-$9,000 region.
Despite its inability to gain a strong footing within the five-figure price region, its technical outlook remains incredibly bright.
Analysts are now noting that $11,500 is a high time frame target – assuming that bulls can hold the crypto above a crucial support level before its weekly candle close later today.
Bitcoin Rallies Past $10,000 Before Facing Firm Rejection
Overnight, Bitcoin’s tempered momentum seen throughout the past couple of days reached a boiling point, with its price exploding up towards $10,200 before facing a massive influx of selling pressure.
From this point, the crypto declined to lows of $9,800, but it has been climbing higher ever since.
At the time of writing, Bitcoin is trading up over 2% at its current price of $9,950. Bulls are currently attempting to shatter the heavy resistance that sits at $10,000.
One popular cryptocurrency analyst explained that a weekly candle close above $9,760 would provide BTC’s technical outlook with a serious boost.
“BTC: Weekly close above $9,760 is what we’re looking for today. Ideally, a weekly close above $10,185 would give another high-high on the weekly trend,” he explained.
Image Courtesy of Josh Rager. Chart via TradingView.
Here’s How High BTC Could Rally If It Posts a Bullish Weekly Close
Assuming that buyers can end the week on a high note and support Bitcoin above $9,760 for the next several hours, it could soon aim for $11,500.
One analyst spoke about this target in a recent tweet, explaining that a strong breakout above its $10,100 resistance should be enough to spark a movement to this level.
“BTC: Cautiously bullish. Blue box should be a buy if a retrace was to occur… A strong breakout leads to 11.5K as first major resistance.”
Image Courtesy of Chase_NL. Chart via TradingView.
The coming few hours should provide significant insights into where Bitcoin will trend during the week ahead.
Featured image from Shutterstock. Charts via TradingView.