- Bitcoin has been trading within a large range throughout the past several weeks
- This has done little to offer investors with insights into the cryptocurrency’s mid-term trend
- That being said, bulls are now striving to break above the upper boundary of this range, with a confirmed and sustained break being an incredibly bullish sign for BTC
- Top traders are still expressing caution when it comes to the cryptocurrency’s short-term outlook
- One trader is noting that a failure for BTC to post a new high above $12,000 would be a grim sign that suggests a visit to $11,200 is imminent
Bitcoin is showing some signs of strength today as its bulls vie to propel it past $12,000.
This level has been a point of contention for the cryptocurrency for several weeks now, as each rally towards this level has resulted in a sharp rejection that leads its price to slide lower.
Although bulls are currently testing the waters above this level, until the benchmark crypto closes a daily candle above here, its mid-term outlook is unknown.
One top trader is noting that although he is now long biased on BTC, a failure for it to form a higher high above this level could indicate that downside is imminent.
Bitcoin Attempts to Shatter $12,000 Resistance as Bulls Gain Momentum
At the time of writing, Bitcoin is trading up just under 2% at its current price of $12,150. This is around the price at which it has faced multiple harsh rejections throughout the past few weeks.
As such, until BTC can post a daily candle close above this level, its short-term outlook remains somewhat unknown.
One factor that may be driving this push higher is its bullish weekly candle close above $11,700 – which is a historically important level.
This marked the first daily and weekly close above this level since 2017. Analysts widely believe that this is an incredibly positive sign for Bitcoin.
Top Trader: BTC Still at Risk of Seeing Downside as $12,000 Resistance Holds Strong
Despite the bullish move it has made today, one respected trader is noting that the Bitcoin remains in a precarious situation until it can post a higher time frame close above $12,000.
“Range still unbroken on BTC. Same gameplan as before, will be hedging anything close to 12k if it fails to make a new high, and will be longing anything close to 11.2k. If either of those break pretty easy breakout trades in either direction.”
Image Courtesy of Flood. Chart via TradingView.
With Bitcoin’s daily candle close fast approaching, how it trends in the next hour could be vital for understanding its mid-term outlook.
Featured image from Unsplash. Charts from TradingView.