Bitcoin and the entire cryptocurrency market have been seeing some rather mixed price action in recent weeks.
Although the benchmark digital asset currently remains caught within a prolonged consolidation phase within the upper-$11,000 region, it has been facing multiple rejections at $12,000 that have hampered its near-term outlook.
The latest rejection at this level took place overnight, with its price subsequently reeling as low as $11,700.
The buying pressure here was enough to stop it from seeing any further downside.
Although it has yet to post any clear trend, analysts are noting that a large movement is likely looming on the horizon.
One trader is specifically pointing to a few factors that suggest Bitcoin may still be well-positioned to see an explosive surge up towards $13,000 or higher in the coming days and weeks.
It may first have to decline slightly, however, as a massive liquidity region currently sits around $11,500.
Bitcoin Shows Signs of Strength as Bulls Guard Against a $12,000 Rejection
At the time of writing, Bitcoin is trading up just under 1% at its current price of $11,900. This marks a notable upswing from its daily lows of $11,700 that were set overnight.
The crypto attempted to breach $12,000 yesterday evening, although the selling pressure here once again proved to be insurmountable. This subsequently led it to slide down towards its overnight lows.
Bulls’ ardent defense of $11,700 has allowed it to erase virtually all of the losses that came about as a result of its recent downswing.
This is a sign of intense technical strength, as it signals that the cryptocurrency still has significant buying pressure backing it.
One reason why $11,700 proved to be such a strong level of support is due to this being the crypto’s weekly open.
While speaking about the importance of this level, one analyst explained:
“This range is a beautiful example of how important the weekly open & monthly open levels are.”
Image Courtesy of Byzantine General. Chart via TradingView.
Here’s the Key Liquidity Region BTC May Tap Before Breaking $12,000
While speaking about the crypto’s near-term outlook, the same analyst also noted that he believes Bitcoin may first decline to $11,500 before it can push higher.
“11900 –> 11500 –> then we leave bears behind for good. Good riddance.”
Image Courtesy of Byzantine General.
Because $11,500 is below the cryptocurrency’s weekly open, the dip to this level must be fleeting, as any high time frame close beneath $11,700 could spell trouble for BTC’s outlook.
Featured image from Unsplash. Charts and pricing data via TradingView.