Bitcoin Closing Above This Level Could Trigger a Move Back Above $11,000
- Bitcoin has flirted with the $10,000 support multiple times over the past few days.
- The cryptocurrency has temporarily dropped below that pivotal level multiple times, falling as legacy markets also taper lower.
- Despite this, analysts are still convinced that BTC can undergo a strong recovery that will take it back to $11,000.
- The caveat is that BTC must hold above $10,450-10,500 to confirm the recovery.
- Analysts remain optimistic about Bitcoin’s long-term outlook as macro trends continue to favor the growth of a decentralized, scarce money.
Bitcoin Closing Above $10,450 Region Could Trigger a Notable Recovery: Here’s Why
Bitcoin has flirted with a recovery ever since it hit $9,800 late last week. The leading cryptocurrency currently trades at $10,250, but traded at both $9,900 and $10,400 over the past few days.
A crypto analyst believes that the cryptocurrency closing above $10,450 could trigger a recovery to $11,200. $11,200 is 9.2% above the current price and 7.1% above the validation point of this bullish theory.
“No candle has closed below 10.100 in 7 days, good work of the Spartans. Now bulls need to close above to 10.450 to “confirm” a up move to 11.2k.”
Chart of BTC's price action over the past few weeks with an analysis by crypto trader Inmortal Technique (@inmortalcrypto on Twitter). Chart from TradingView.com
This trader isn’t the first to have assigned importance to the resistance in the $10,450 region.
As reported by Bitcoinist previously, a historically accurate analyst thinks that Bitcoin moving above $10,500 could trigger a textbook Wyckoff Accumulation pattern. That pattern, should it play out, will take BTC back into the $11,000-12,000 range as the above analyst also suggested.
Chart of BTC's price action over the past few weeks with an analysis by crypto trader Il Capo of Crypto (@CryptoCapo_ on Twitter). Chart from TradingView.com
Macro Trends Still Favoring BTC Growth
Analysts still think that macroeconomic trends favor Bitcoin’s growth in the longer run.
Mike McGlone, a senior commodity analyst at Bloomberg Intelligence, recently wrote on the matter of BTC’s price action:
“#Gold at $1,900, #Bitcoin $10,000 Return to Decisive Support Zone – Some overdue mean reversion in the stock market is pressuring most assets, but we expect gold and Bitcoin to come out ahead in most scenarios. Declining equity prices encourage more monetary and fiscal stimulus…
Others have echoed this sentiment. For one, Mike Novogratz of Galaxy Digital said earlier this year that the liquidity injections that central banks are doing are driving capital and attention to gold and BTC.
If these macro trends will be enough to stop a further decline in the Bitcoin price in the short term, though, remains to be seen.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Closing Above This Level Could Trigger a Move Back Above $11,000
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow
