Bitcoin has been consolidating in the top USD 11,000 region for the past few days. The ongoing attack of sideways trading first came about last weekend when it was faced with a firm $ 12,000 rejection.
The selling pressure here has since proved insurmountable and traders are now shifting their focus to smaller altcoins – which have made massive gains in recent days.
Where Bitcoin trends are next may depend largely on whether buyers can close the daily candle today and the weekly candle above USD 11,700 tomorrow.
Analysts note that the importance of this level should not be underestimated.
Despite a close above $ 11,700 being a likely event, one trader falls short on BTC with a downward target of around $ 10,300.
If this goal is met, it will mark a break under Bitcoin’s critical support for a high USD 10,500 timeframe.
Bitcoin struggles to overcome major regions of resistance as the consolidation phase continues
At the time of writing, Bitcoin is trading just over 1% at the current price of $ 11,750. This is around the price it has been trading at for the past few days and weeks.
Last Saturday, BTC ran up to $ 12,000 before facing a harsh rejection that then caused the price to drop.
After tapping into its support in the lower $ 11,000 region, the crypto was able to post a strong rebound that then led it to its current price levels.
From this point on, it is consolidating into the top USD 11,000 region.
The crucial resistance buyers are currently trying to overcome is between USD 11,700 and USD 12,000.
A merchant believes that this price region will be impossible for the cryptocurrency in the short term, putting forward a downward target of around $ 10,300.
“This is what I would be looking for too short now,” he explained.
Image Courtesy of Calmly. Chart via TradingView.
$ 11,700 is a critical level to watch in the near term – Claims Analyst
Where Bitcoin trends in the coming days largely depend on its response to USD 11,700 as the weekly candle is fast approaching.
Bulls have been fighting for control of this level for the past day. If BTC puts a weekly close above it, it could push it higher and invalidate its recent weakness.
An analyst spoke about this level in a recent tweet, saying:
“Now you know what I meant by 11,700 as an essential level for bitcoin. It will be difficult to overcome. “
Image Courtesy of Teddy. Chart via TradingView.
The next 24 hours are vital to understanding Bitcoin’s medium-term outlook.
Featured image from Unsplash. Charts from TradingView.