- Bitcoin’s price action has been choppy over the past couple of weeks, with bulls and bears reaching an impasse as it consolidates between $10,200 and $11,200
- These two levels have proven to be strong support and resistance, and which one is broken first could offer some significant insights into its near-term outlook
- As for where it may trend in the near-term, one trader is noting that it all depends on its upcoming weekly candle close
- He is closely watching to see whether or not it can stabilize over $10,600
Bitcoin has been guiding the market over the past couple of weeks, providing investors with few insights into its directionality as it oscillates between $10,200 and $11,200.
Yesterday’s sharp upswing that led it up to highs of $10,800 revealed that bulls still have some underlying strength despite their recent weakness.
That being said, the reaction to $10,800 was grim, as bulls rapidly witnessed their control over the crypto dissolve once this level was hit.
One analyst is now noting that where the entire market trends next may depend largely on Bitcoin’s upcoming weekly close. He believes it is vital that the weekly candle closes above $10,600.
Bitcoin Consolidates Following $10,800 Rejection
At the time of writing, Bitcoin is trading down just over 1% at its current price of $10,630. This is around the price at which it has been trading throughout the past day.
Yesterday, buyers were able to push its price as high as $10,800 before it lost its momentum and began sliding lower. At this point, it does appear to be forming an incredibly tight consolidation range between $10,500 and $10,600.
Where it moves next may depend largely on how it trends heading into the weekend, as a continued bout of consolidation could ultimately result in another bearish decline if bulls are unable to spark another uptrend.
Analyst: Here’s the Key Level BTC Must Close Above to Rally Higher
While speaking about Bitcoin’s near-term outlook, one analyst explained that it is vital bulls close its weekly candle above $10,600 this Sunday evening.
“BTC weekly: Currently retesting $10600 support. As long as that holds until the week ends, that’s typically bullish,” he said while pointing to the chart seen below.
Image courtesy of DonAlt. Chart via TradingView.
Where the market trends in the coming few days should provide analysts with significant insights into the mid-term outlook of Bitcoin and other major altcoins.
If BTC cannot surmount its mid-term resistance at $11,200 in the near-term, it may continue seeing choppy trading.
Featured image from Unsplash.
Charts from TradingView.
Source: Here’s the Key Level Bitcoin Needs to Close Above to Kick Off an Uptrend