This Level Holds the Key to Bitcoin Moving Higher in the Near Term

Bitcoin has surged to $11,050 as of this article’s writing. The coin has gained over 10% from the lows earlier this month of $9,800. Despite the rally, Bitcoin is not yet in a fully bullish state according to some analysts. Traders say that BTC must retake the $11,200 horizontal to confirm the ongoing rally has […]
Nick Chong
Posted by Nick Chong September 19, 2020 2 Mins Read
Bitcoin has surged to $11,050 as of this article’s writing. The coin has gained over 10% from the lows earlier this month of $9,800. Despite the rally, Bitcoin is not yet in a fully bullish state according to some analysts. Traders say that BTC must retake the $11,200 horizontal to confirm the ongoing rally has […]
  • Bitcoin has surged to $11,050 as of this article’s writing.
  • The coin has gained over 10% from the lows earlier this month of $9,800.
  • Despite the rally, Bitcoin is not yet in a fully bullish state according to some analysts.
  • Traders say that BTC must retake the $11,200 horizontal to confirm the ongoing rally has legs.
  • This technical feat may not be easy, though.

BTC Must Move Above $11,200 to Confirm More Upside

While many analysts have embraced Bitcoin’s rally from $9,800 to $11,000, the cryptocurrency is not yet in a bullish state.

One trader says that for BTC to truly convince market participants that it is in a bullish state, it will need to flip $11,200 into support on a weekly time frame. It attempted to do so in August but failed when the coin slipped in early September.

“Target / Major resistance finally hit, if you worried about price dropping from here and using leverage then close out your position and wait for this level to be flipped support… $11,200 is a key HTF level for flipping it will not be easy.”

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Chart of BTC's price action over the past two years with analysis by crypto trader Cactus (@TheCryptoCactus on Twitter). Chart from TradingView.com

Bitcoin will have trouble breaking past $11,200, though.

One cryptocurrency trader recently noted that there is a clear confluence of reasons why Bitcoin’s ongoing rally above $11,000 will soon reverse. A few of these reasons are as follows:

  • $11,100 is the 61.8% Fibonnaci Retracement of the drop from $12,000 to $9,800.
  • There are two key short-term moving averages at around $11,000.
  • A bearish CME gap is forming between Friday’s price action and that of Monday.
  • There is decreasing volume as Bitcoin moves higher, suggesting the bullish recovery is losing momentum. The lack of bullish volume could result in a reversal lower.

Bitcoin Remains Long-Term Bullish

Analysts remain convinced that Bitcoin’s long-term trend remains bullish despite any mishaps that may transpire in the near term.

Dan Tapiero, the co-founder of DTAP Capital along with a number of other firms, recently commented that Bitcoin is likely to undergo exponential growth this cycle:

“Tremendous long term Log Chart of #Bitcoin projects up 5-10x on this run. Just breaking up NOW. Should last a few years as 2.5yr consolidation is fantastic base for catapult up. Break of old highs will have explosive follow through. Time to sit and be patient.”

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Chart of BTC's macro price action (Logarithimic chart) by Bitcoin bull and gold investor Dan Tapiero. Chart from Bloomberg

Corroborating this sentiment, long-term on-chain signals indicate that Bitcoin is currently unvervalued, making current prices a buying opportunity.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
This Level Holds the Key to Bitcoin Moving Higher in the Near Term
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