Bitcoin price must confirm $11,850 as support shortly to corroborate expectations of further upside

Bitcoin price has been pressing higher over the past 72 hours as the U.S. dollar finally began to lose traction after a relief rally. BTC currently trades for $11,334, a price far above the weekly lows around $10,400. At the highs seen on Friday evening, BTC traded almost as high as $11,500 — a pivotal resistance level in the near term.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price should clear $11,850 soon

According to Whale Map, there is crucial on-chain resistance for BTC at $11,850, where whales acquired a large number of upsent Bitcoin. Bitcoin is currently sitting above the first important resistance at $11,288 but faces this overhead resistance.

For BTC to confirm its ongoing trend, it should retake both $11,288 and $11,857 in the coming days. Bitcoin doing so could surge above the summer highs set around $12,500 in the middle of August.

Analysts think that trends in Bitcoin’s sell-side liquidity could drive prices higher over time.

The head of technical analysis at crypto research firm Blockfyre recently stated on BTC’s potential to move higher due to suppliers purchasing coins on the open market:

“A few thought on BTC here: 1. The float is being absorbed 2. The suppliers who introduced supply could be caught offsides and need to pick inventory back up 3. Each subsequent company will have to buy from a lower supply pool. We need a HH on 1D to confirm. Conditions are there.”

Another analyst noted with eleven publicly-traded funds and companies owning 11% of BTC’s supply, and a sell-side liquidity crisis could take place where an increasing number of buyers will dramatically push Bitcoin higher.

Just this past week, leading fintech company Square purchased $50 million worth of Bitcoin with 1% of the assets on its balance sheet. Many saw this as a validation of the cryptocurrency space, while others saw this as a clear accentuation of BTC’s scarcity.

And here’s why $ 13,000 is so important for BTC on a macro time frame

Bitcoin’s recent push higher has made some investors look ahead, speculating as to what comes next if the leading cryptocurrency manages to set new year-to-date highs.

Crypto trader and chartist Salsa Tekila believe that should BTC surmount its summer highs of $12,500, $13,000 will be crucial to watch. The trader shared the chart below on October 8th, which shows BTC’s price action since the 2017 lines with $13,000 and the prices in that vicinity highlighted.

Explaining why $13,000 is so relevant, Salsa Tekila who shared the chart wrote:

“IMO $13’000 is the most important $BTC macro level. 1) Rejected 2018, pulled back to 3k. 2) Rejected 2019 before flash-crash to 3k. 3) Tested once in 2020 since price recovery. Push and hold through for a while (not just a fence) would make me believe in ATH. A man can dream.”

Some think that $14,000 may be of more importance due to it marking the exact highs of 2019’s rally. $14,000 also marked where BTC’s December 2017 candle closed, not $20,000 as some may expect.

It can be said that the resistance between $13,000 and $14,000 is important. Bitcoin is expected to soon move towards $13,000.

Crypto trader Polar Hunt recently noted that if you overlay the last macro market cycle for BTC on top of current price action, it is clear that a move towards $13,000 will soon be had:

“Can’t get enough of this overlay. Each candle is adjusted to reflect the percentage drop not price. And it fits like a glove.”

Should Bitcoin push to $13,000 or $14,000, it remains to be seen if it will confirm that level as support.

You can see the Bitcoin price here.