Selling Pressure Mounts as Bitcoin Nears Key Resistance; Trends to Consider
Bitcoin and the aggregated cryptocurrency market are flashing some mixed signs as BTC hovers beneath the $11,000 region.
Currently, the market is relatively stable, with the hype surrounding the launch of Uniswap’s governance token helping to drive Ethereum’s price towards $380, creating a tailwind for smaller altcoins.
It is important to note that the impasse reached between bulls and bears also comes amidst weakness in the traditional markets, which may spill over into crypto and create a headwind that makes it difficult for Bitcoin to surge higher.
The key price level to watch in the near-term is $11,100, as this has proven to be strong resistance for BTC.
One analyst is now noting that there are a few crucial levels he is closely watching as Bitcoin consolidates, with a continued defense of one key support level potentially sparking a move up towards $11,100.
Bitcoin Shows Signs of Strength in the Face of Stock Market Turbulence
The macro uncertainty surrounding the global economy has sent shockwaves throughout the crypto market, with most of the benchmark indices to begin erasing some of the gains seen throughout the past couple of months.
This macro uncertainty has had impacts on Bitcoin as well, with the crypto once again rekindling its correlation to equities.
Although Bitcoin is stable today, this has no doubt placed some pressure on its price action, which comes as it reaches a pivotal level that bulls are attempting to defend.
Currently, all the benchmark indices are trading down well over 1%, suggesting that the rest of the week could be turbulent for equities. If this is the case, then Bitcoin’s growth may be hampered in the near-term.
Analyst: These Key Levels Will Determine BTC’s Future
While speaking about the benchmark cryptocurrency’s outlook, one analyst explained that there are a few crucial levels he is watching.
One Bitcoin support level he mentions sits at $10,750, noting that a defense of this level could mean another bid at $11,100 is imminent. Earlier this morning, BTC tapped this level before rebounding – a sign that upside could be right around the corner.
“The levels I’m watching on BTC are structured here. The short term still trending upwards, but on a crucial resistance to break. If $10,750 fails to hold, $10,600 is next, and most likely the area around $10,200. If $10,750 holds, another test of $11,100 seems likely.”
Image Courtesy of Crypto Michael. Chart via TradingView.
How Bitcoin trends as the end of the week approached should offer investors with some insights into its mid-term trend.
Featured image from Unsplash. Charts from TradingView.