Bitcoin price has a crucial level at $ 11.000 to move above to confirm that a full-blown bullish reversal is in the works
Bitcoin price has bounced over 10% from the lows set two weeks ago at around $ 9.800. But BTC still has a crucial level to move above to confirm that a full-blown bullish reversal is in the works. At press time, BTC is trading around $ 10.976.
Bitcoin price needs to surmount this pivotal level to confirm the upside
According to crypto analyst Edward “Teddy” Cleps, Bitcoin must move above the $ 11.100 horizontal to confirm that the ongoing correction is a bullish reversal.
Cleps shared the chart below on September 20th, accentuating the importance of $11,100 to Bitcoin over recent weeks. As the chart indicates, Bitcoin bounced multiple times at the $11,000 support during last month’s consolidation between $11,000-12,000. BTC managing to confirm that level as support will likely trigger a move towards $12,000.
Cleps explained more about the significance of that level when he wrote:
“Trend is bullish as long as it is above the purple box – this dump could be seen as a ‘higher low’. However, lambo season is above that line – let’s break it please.”
Other analysts have confirmed the importance of the resistances in $11,000-11,200 to Bitcoin’s medium-term bull case.
Another market commentator, TheCryptoCactus, referencing the chart seen below, said the following on the importance of that zone:
“Target/Major resistance finally hit, if you worried about price dropping from here and using leverage then close out your position and wait for this level to be flipped support… $11,200 is a key HTF level for flipping it will not be easy.”
Long-Term Trend Still Bullish
Bitcoin’s long-term remains in a positive state despite any weakness in the near term, on-chain analysts say.
Willy Woo recently commented that Bitcoin’s macro Difficulty Ribbon metric is currently in a period of compression, which is a reliable indicator of bullishness.
Zooming out to the mid macro (months ahead), we’re in a really nice zone of Difficulty Ribbon compression, post halvening (red verticals), this is quite a reliable indicator of bullishness. pic.twitter.com/UDMxpUNPvv
— Willy Woo (@woonomic) September 14, 2020
He added that there are other trends like a spike in on-chain BTC moved that suggests long-term upside is likely.
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