Bitcoin’s price saw a notable rebound today that allowed it to recover from an overnight dip and rally to fresh local highs within the $11,500 region.
This push higher is promising because it is finally allowing Bitcoin to confront the crucial resistance it faces between $11,600 and $12,000, which is a resistance zone that analysts have been closely watching for quite some time.
If it breaks through this region in the coming days, it could signal that a fresh leg higher for the entire market is imminent, potentially sparking a serious bout of buying activity amongst investors who had been sitting on the sidelines.
That being said, one analyst is expressing caution when it comes to the crypto’s near-term outlook. He believes that until there’s a break above roughly $11,800, it is too early to flip fully bullish on BTC.
Bitcoin Shows Signs of Strength Following Overnight Decline
At the time of writing, Bitcoin is trading up over 1% at its current price of $11,500. This marks a notable surge from daily lows of $11,200 that were set overnight during a sharp selloff.
This attempted selloff didn’t last for long and didn’t quite fill the CME gap currently sitting within the $11,100 region.
Some analysts believe that this level will be filled before Bitcoin can see a sustainable uptrend, but traders said the same thing about the gap at $9,700 – which was never filled.
Where Bitcoin trends next will depend largely on how buyers handle the selling pressure that exists just above where the crypto is currently trading.
Any rejections here could be grave and potentially lead to a sharp fear-induced selloff, as analysts have been watching the resistance at $11,600 for quite some time.
Here’s the Key Resistance Zone to Watch
While sharing his thoughts on Bitcoin’s present outlook, one analyst explained that he is closely watching the price region between $11,600 and $11,800 due to the heavy selling pressure here.
He notes that it is too early to flip fully bullish on BTC until this region is surmounted.
“I was all for jumping into longs at mid 10k’s, while we were at a key support level. But now we are on the other end. Proceed with caution young bullas,” he said.
Image Courtesy of Credible Crypto. Chart via TradingView.
Where the entire market trends in the coming few days and weeks will likely depend entirely on its reaction to the selling pressure it faces just above its current price.
Featured image from Unsplash. Charts from TradingView.