If Bitcoin price is steadily recovering within the cloud in Ichimoku indicator, suggests it is seeing healthy and stable accumulation

Bitcoin price just smashed back above $11,000, and bulls are now attempting to flip the key level as resistance turned support. The move comes following the breakout of a triangle pattern and a sudden reappearance of weakness in the dollar’s now short-lived recovery. But the question is, how far will this rally go?

Bitcoin price reclaims $11,000 but can bull hold it this time?

BTC has now spent three days in the green. Yesterday, Bitcoin broke upward from a triangle pattern forming on daily timeframes. The triangle was believed to be a bearish pennant following a head and shoulders reversal pattern. But after bulls so valiantly defended $ 10,000 for seven consecutive days, it may be the last time Bitcoin ever trades below five-digits.

BTCUSD Daily Triangle Breakout And Potential Target | Source: TradingView

Utilizing the measure rule, the triangle’s potential target is somewhere closer to $12,000 than $11,000, so Bitcoin has a lot more to run. Roughly a 10% move could be expected considering the pattern’s height, taking the first-ever cryptocurrency to around $11,850 before it challenges its next highest resistance level.

A push beyond local 2020 highs around $12,000 will likely result in a retest of $13,800 where 2019’s top lies. Beyond there, could be the retest of $20,000 the crypto world has been waiting for.

In the near term, traders say that Bitcoin needs to hold above $10,700 to see further upside. In a technical sense, the $10,700 area is a critical support area in the short-term BTC price trend.

Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said:

“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.”

Bitcoin’s important technical levels in the short term are $10,700, $11,200, and $12,000. If BTC successfully breaks out of $11,200, which is the resistance level it rejected in early September, $12,000 becomes more likely.

It might be too early to call an Altcoin season

Despite the optimistic outlook of Bitcoin, researchers are becoming cautious in predicting a major altseason.

Even major DeFi tokens dropped by 40% to 70% in the past two weeks. As an example, Chainlink declined by more than 40% since September 12, within merely a month.

Researchers at the on-chain market data firm Santiment explained that large-cap assets, like Bitcoin, recovered in the past week.

However, the researchers noted that the majority of the top 100 cryptocurrencies got decimated. Due to the overall nervousness in the market, capital has cycled back into major cryptocurrencies. Considering the trend, the researchers noted that an altseason, especially among small-cap cryptocurrencies, might be delayed.

They explained:

“Despite this, the majority of the top 100 #blockchains have been decimated. Particularly among mid and small-cap assets, the sell-offs have come hard and swiftly. As many longer-term traders have experienced over the years, #altcoins runs can be enjoyable when #Bitcoin is climbing. But when volatility hits and mid-sized, market-wide dumps occur as they have over the past month, the small caps generally have the most difficulty recovering.”

For now, the technical strength of Bitcoin after the recovery above $11,000 appears to be buoying the sentiment around altcoins.

You can see the Bitcoin price here.