Bitcoin is at a “do or die” level but silver and gold will guide Bitcoin higher

Bitcoin witnessed some of the most intense volatility it saw in months yesterday.

After rallying up to highs above $12,000, BTC struggled to overcome resistance at this level, eventually led to a sharp drop in price that made it reel into the low $ 11,000 area.

It has found some strong support at this level for the past several hours but is still in a precarious position due to the intensity of this sell-off.

A technical impact on BTC is that this decline has pushed it below the critical long-term level that analysts are expecting BTC to close the week above.

In order for its strong medium-term uptrend to continue further, buyers need to regain $ 11,500.

Bitcoin broke below critical level after selling off

At the time of writing, Bitcoin is trading more than 5% down at its current price of $ 11,133. This marks a slight rebound from the recent low of $ 11,000 that has been mined many times after last night’s decline.

This decline occurred quite suddenly and dealt a strong blow to the public strength that BTC has established over the past few weeks.

Whether or not a buyer can set up a strong support base at $ 11,000 will likely be the deciding factor for the next destination.

Analyst “Josh Rager” noted in a recent tweet that $ 11,530 is now the critical level that traders need to watch closely.

This level has been established throughout the past year as a macro resistance, and the latest decline has forced BTC back below it.

“BTC – a bummer that Bitcoin price back under that long term level for the weekly close tomorrow. Need to move back up and close over $11,531, but after a drop like this, I’m not sure that we do immediately. Doesn’t mean price can’t pump, but volatility should be expected.”

BTC is at the “do-or-die” level

Analyst “Teddy” echoed the importance of this level, explaining that a weekly close above $ 11,500 would allow the price to continue to rise.

Conversely, a break below this level can lead to a period of consolidation, bode well for altcoins.

“This weekly candle close will be vital to understand the upcoming short term trend. A weekly close above = continuation. Weekly close below = consolidation/rejection (great for altcoins).”

Silver and gold will guide Bitcoin higher

While talking about Bitcoin’s rejection of $ 12,000, Alex Krüger – an economist focused on the famous cryptocurrency – explained that this price action led to BTC forming a “blowoff top.”

Despite being a bearish sign, he noted that both gold and silver had similar technical formation just last week, with a quick decline followed by an expansion of their uptrend.

“That was a blowoff top in ETH and BTC last night. A blowoff doesn’t have to be the top. Silver and gold had a blowoff top last week. See how similar charts are in the days and minutes preceding the crash. The bigger picture remains unchanged. Higher highs ahead in 2020 IMO.”

Bitcoin do or die 2

Source: Alex Krüger / Twitter

Because the economic context currently affecting Bitcoin has dragged gold to an all-time high, it’s likely that the BTC uptrend is far from over.

You can see the Bitcoin price here.

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