Bitcoin has now entered a consolidation phase as it hovers above the $11,000 level. Buyers’ ability to establish this price level as support appears to be an overtly bullish sign for the benchmark digital asset.
Over the past two days, BTC’s mid-term outlook has been growing increasingly bright.
Yesterday, bears sent the crypto down to lows of $10,500 before BTC was met with a massive influx of buy orders that sent its price surging higher.
This support-resistance flip is a positive sign that suggests further upside could be imminent.
Bitcoin is now in the process of attacking its range highs in the lower-$11,000 region, as bulls are moving to break the resistance established between $11,200 and $11,400 earlier this week.
One analyst is noting that he believes a sharp move up to its mid-term resistance at $11,600 is imminent.
This comes as other traders highlight a bourgeoning technical formation that could help provide the cryptocurrency with some serious upwards momentum in the near-term.
Bitcoin Attacks Range High Resistance as Analysts Eye Move to $11,600
At the time of writing, Bitcoin is trading up just under 2% at its current price of $11,110.
Throughout the past couple of days, BTC has been ranging between $10,800 and $11,200, entering a consolidation phase as buyers attempt to drum up further support.
In the near-term, the cryptocurrency’s next resistance to watch sits between $11,400 and $11,600.
Whether or not it is able to break above this region may depend on how strong BTC’s break out of this consolidation range is.
One factor working in the favor of bulls is the recent support-resistance flip of $10,500. On Monday evening, bears sent the crypto reeling down to this price level. Once tapped, Bitcoin’s price instantly rocketed back to $11,000.
Analysts are now noting that a break above its current range highs could lead it towards $11,600.
“Bitcoin attacking the range high! Clearing and breaking that level and we’ll get that run towards $11,400-11,600,” one trader said.
Image Courtesy of Crypto Michaël. Chart via TradingView.
Rapidly Forming Technical Pattern Suggests Move to $12k+ is Brewing
Another analyst recently explained that he believes Bitcoin can push past $12,000 based on its current technical strength.
He also points to the existence of a bull pennant that has been forming as another reason why upside could be imminent in the hours and days ahead.
“BTC forming bullish pennant that can push 12k+ based on technicals.”
Image Courtesy of CryptoBirb.
The same analyst also observed that negative sentiment in the market spiked just before Bitcoin’s latest push from the $9,000 region to over $11,000 took place.
“Also, interesting spike on negative sentiment peak right before price went up exponential.”
Image Courtesy of CryptoBirb. Data via Santiment.
Because positive sentiment remains in-line with where it has been in recent weeks and has yet to see any abnormal spike, this could be a sign that this rally has fuel to extend further.
Featured image from Unsplash. Charts from TradingView.