After $1,200 Surge, Bitcoin Faces Down a Pivotal Resistance Level

Nick Chong

Last Updated: June 11, 2024 2:07 pm

2 mins read

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Bitcoin has seen an absurd bout of price action over the past few days. The leading cryptocurrency, after falling to $11,200 last week, surged as high as $13,250 on leading exchanges on Wednesday. The coin has since whipsawed since hitting those highs, dropping and rallying by hundreds of dollars below that high as investors gauge the direction of BTC.

Bitcoin Faces Down a Pivotal Resistance Level

Bitcoin is facing down a pivotal resistance level after the aforementioned price surge.

One crypto-asset analyst, the head of technical analysis at crypto research firm Blockfyre, shared the chart seen below amid the move higher. It notes that while Bitcoin is passing the crucial resistance at $12,000, it remains to be seen if it can pass and hold above the resistance in the $13,000 region, marked as “SUPPLY” on the chart:

“Leaving 1000 day range. Now you want to see support built on top of it, and continue to trend up after and thus hopefully we shall never see it again there after (maybe a wick or something but that’s it)”

Chart of BTC's price action since the start of 2017 by crypto trader and head of TA at Blockfyre Pentoshi (@pentosh1 on Twitter).
Source: BTCUSD from TradingView.com

Another analyst explained why this region is so important for Bitcoin.

$13,000 is pivotal for bulls because this is where the cryptocurrency began its blow-off top in the middle of 2019. Over the span of a few hours last year, the price of BTC teleported from the $12,000 to $13,000 range to $14,000, shocking most investors and leading some to think that a full-blown bull run was imminent. But Bitcoin rejected from $14,000, then $13,000 later that summer in confirmation of that region’s technical importance.

Further Upside Likely

Analysts think that BTC is cleared to move even higher in the days ahead.

One trader recently suggested that the open interest of leading BTC futures markets indicate that the coin is reaching a point to buy:

“Open Interest: the # of outstanding futures contracts that have not been settled. For each buyer there must be a seller. From the time the buyer/seller opens a contract until the counter-party closes it, that contract is considered open. Current levels look bullish.”

Others noted that a continued push for fiscal stimulus will drive Bitcoin higher.