Bitcoin has shown some signs of intense strength for the past day, with the cryptocurrency making up for some of the losses resulting from the drop from $ 12,400 to lows of $ 9,900.
Bulls now appear to be aiming for ascent to USD 11,000, which previously remained strong as a level of support during the descent.
Supporting this resistance level again could provide a strong foundation for the cryptocurrency to bounce off, potentially allowing BTC to reclaim its long held position in the top USD 11,000 region.
Speaking about the short-term technical outlook for the digital benchmark, one analyst noted that it is currently showing some signs of a reversal of its recent downtrend.
This indicates that it may now be in a good position to see significant further upward in the near term, possibly retreating to, or even past, its previous annual highs.
At the time of writing, Bitcoin is trading up nearly 4% at the current price of $ 10,710. This marks a massive rebound from the recent lows of USD 10,200 set yesterday.
It now looks like the cryptocurrency is on the cusp of moving further upwards in the near term as this latest push higher has significantly boosted its technical outlook.
One analyst, while even watching the asset’s breakout rally noted that $ 11,000 is a logical goal.
He points to $ 11,100 as a key level to be destroyed in the short term.
“Bitcoin daily chart – 11k in sight as BTC tries to break out of this trading range,” he said, pointing to the chart below.
Image Courtesy of Cheds. Chart via TradingView.
Another analyst echoed this feeling, to explain that Bitcoin’s current market structure seems to indicate that significant further upward momentum may be imminent in the near term.
He specifically notes that this momentum could be bolstered as BTC has seen “one of the most significant support and resistance shifts” in years.
“Kick yourself when you sell after falling 20% off the highs in the first test of one of the most significant support and resistance flips we’ve had in years. Context is everything, ”he explained.
Image Courtesy of Cantering Clark. Chart via TradingView.
How BTC and the aggregated market trend of the next few days should provide insight into the long-term importance of the current upturn.
Featured image from Unsplash. Charts from TradingView.