Bitcoin Bulls Target $11.5k After Sharp Price Bounce
At press time, Bitcoin is holding up strong at a price of $10,700. The market sentiments among analysts and traders are similar; an $11,000 price breakout is in sight. Yesterday, the bulls fired up and broke through the sideways price movement that left Bitcoin peaking between the $10,300 to $10,500 mark.
A sharp decline to the lower ends of $9,000 was recorded, precisely $9,916 but prices flipped over almost as quickly and the result of this recovery is propelling Bitcoin to a much-needed bull run. As noted in our previous report, analysts are very optimistic about the price rally, as a result, they had mostly opined that the bear trend over the past week was temporary.
The tailwind movement in price, courtesy of the exiting consolidation became effective with a bullish reversal pattern that pushed Bitcoin to a daily high of $10,800 yesterday, a price that it has now revisited at the time of this writing.
The next resistance level which has served as previous support is the $11,000 mark and Bitcoin is well poised to make the swing, given that there is no strong price rejection. If this happens, retesting the $11,500 mark, a price that was last seen on the 9th of this month will be the next goal. Without a major price rejection from the bulls, $12,000 might be in sight within the next few days, although some analysts argue that this is still a long shot.
Meanwhile, a bigger question is whether Bitcoin can control the bearish waves after attaining a price breakout above the $11,000 mark. In the history of Bitcoin, as many analysts have observed, traders are known to withdraw at $10k due to the uncertainty caused by the standby volatility. Traders will usually key in during a bear term and pull back around $10,000 for fear of a bearish trend.
It was this barrier that sparked the debate on Bitcoin’s ability to successfully maintain a price above $10,000. All two times when prices hit an all-time high, ($19,783 in 2017 and $12,920 in 2019), a downtrend quickly followed.
However, analysts remain unshaken in the opinion that the adoption rate has increased tremendously since the last few years and this is indeed a fact. The gamble on the market’s advancement over the last one year has led traders to collectively settle at a prediction of $20,000 as the closing price of the year. But the possibility of this is once again dependent on whether Bitcoin can at least stay put above $10,000.