Bitcoin price reaction to one key technical resistance if break above it could catapult BTC up to $ 12.000

Bitcoin price has finally broken back above $ 11.000 after a prolonged period of consolidation around $ 10.700. This move marks an extension of the momentum incurred following news of Square’s plan to purchase $ 50 million worth of Bitcoin.

Analysts and investors took this news as a sign that companies are widely beginning to accumulate BTC to hold as a reserve asset. As such, it renewed a bullish sentiment and, as can be seen, today helped boost Bitcoin’s technical outlook.

Bitcoin price pushes past $ 11.000 as selling pressure dissipates

At press time, Bitcoin is trading up just under 2% at its current price of $ 11.090. This marks a massive surge from recent lows of $ 10.600 set just a handful of days ago. BTC has broken into the lower-$ 11.000 regions in previous weeks; however, each tap of $ 11.200 has sparked far-reaching corrections.

This time may be different, as fundamental developments are largely backing this movement. If bulls want to maintain their control over the asset, it is imperative to break through this resistance and establish a secure foothold above $ 11.000.

While sharing his thoughts on Bitcoin’s present technical outlook, crypto analyst Crypto Michaël explained that he is closely watching for a break above $ 11.150. He believes that this will be enough to send it straight towards $ 12.000.

He stated:

“Bitcoin: Very simple, plain analysis. Holding above $10,700 is beneficial for further upwards momentum. The crucial breaker is $11,150. If that breaks, I’ll anticipate an acceleration towards $12,000.”

Altcoins are already beginning to show signs of strength as BTC pushes higher. Where the entire market trends next will depend on Bitcoin’s reaction to this level.

The Trump Administration is preparing a $1.8 trillion coronavirus stimulus proposal, its largest such offer in negotiations with the Democrat. Bitcoin has been buoyed this year as investors bet that trillions of dollars of government and central bank spending around the world in response to the coronavirus-induced slowdown will inevitably result in inflation, and therefore be positive for the cryptocurrency. As such, if a stimulus deal is reached, BTC may rise further.

You can see the Bitcoin price here.