Bitcoin Reaches Critical Level as Bulls Attempt to Spark Fresh Uptrend
- Bitcoin’s price has been stuck within a macro consolidation phase for the past several months
- This consolidation has led to the formation of a trading range between $10,000 and $12,400, with bulls and bears with being unable to break above or below either of these levels
- One analyst is now noting that data seems to suggest that BTC is currently trading at a pivotal level for its future
- Although $20,000 is often looked upon as a level of macro importance, one trader is stating that this level only has importance from a psychological level
- He contends that the mid-to-upper $11,000 region is the level that is truly critical for Bitcoin’s macro outlook
Bitcoin and the aggregated crypto market have been caught in the throes of one of the most intense macro consolidation phases it has seen in quite some time.
The benchmark cryptocurrency has been trading between lows of $10,000 and highs of $12,400, with it now consolidating squarely between these two levels.
The price region just above where it is currently trading at may continue acting as strong resistance, as one analyst is noting that it is a crucial region – arguably even more important than $20,000.
He notes that although $20,000 has psychological importance, it simply marked a blowoff top and doesn’t have any technical significance.
Bitcoin Consolidates in Mid-$11,000 Region as Bulls and Bears Reach an Impasse
At the time of writing, Bitcoin is trading up just under 1% at its current price of $11,450. This is around the price at which it has been trading throughout the past few days.
Bears did attempt to spark a sharp selloff a few days ago, but this selling pressure was rapidly absorbed by bulls.
Where the entire market trends next will likely depend largely on Bitcoin and whether or not it can break above its $11,600 resistance.
A continued bout of trading below this level could lead to serious downside in the mid-term.
Analyst: BTC is Currently Trading at a Crucial Macro Level
One analyst explained in a recent tweet that where Bitcoin is currently trading is arguably more important for its macro trend than $20,000, noting that its all-time high was simply a blowoff top that has some psychological significance.
“The ATH was a blowoff top, so now it’s more of a psychological level than anything else. Right here is what matters based on how the price has been distributed over time,” he said while pointing to the below chart.
Image Courtesy of Cantering Clark. Source: BTCUSD on TradingView.
Until Bitcoin breaks $11,600 and begins a fresh leg higher, its near-term outlook remains somewhat unknown.
Featured image from Unsplash. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow