Bitcoin has been consolidating within the upper-$11,000 region for the past several days. Its ongoing bout of sideways trading first came about last weekend when it faced a firm rejection at $12,000.
The selling pressure here has proven to be insurmountable ever since, and traders are now shifting their focus towards smaller altcoins – which have been posting massive gains throughout the past several days.
Where Bitcoin trends next may depend largely on whether or not buyers can close the daily candle today and weekly candle tomorrow above $11,700.
Analysts are noting that the importance of this level should not be underestimated.
Despite a close above $11,700 being a likely occurrence, one trader is flipping short on BTC with a downside target of roughly $10,300.
If this target is hit, it will mark a break below Bitcoin’s crucial high time frame support at $10,500.
Bitcoin Struggles to Surmount Key Resistance Region as Consolidation Phase Persists
At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,750. This is around the price at which it has been trading throughout the past several days and weeks.
Last Saturday, BTC ran as high as $12,000 before facing a harsh rejection that subsequently caused its price to reel lower.
After tapping its support within the lower-$11,000 region, the crypto was able to post a strong rebound that subsequently led it up towards its current price levels.
From this point on, it has been consolidating within the upper $11,000 region.
The crucial resistance that buyers are currently struggling to surmount sits between $11,700 and $12,000.
One trader believes that this price region will be impossible for the cryptocurrency to break above in the near-term, leading him to put forth a downside target of roughly $10,300.
“This is what I’d look for to short for now,” he explained.
Image Courtesy of Calmly. Chart via TradingView.
$11,700 Is a Crucial Level to Watch in the Near-Term – Claims Analyst
Where Bitcoin trends in the coming days may depend largely on its reaction to $11,700 as its weekly candle close fast approaches.
Bulls have been battling for control over this level throughout the past day. If BTC posts a weekly close above it, it may propel it higher and invalidate its recent weakness.
One analyst spoke about this level in a recent tweet, saying:
“Now you know what I meant with 11,700 being a vital level for bitcoin. It will be a hard one to conquer.”
Image Courtesy of Teddy. Chart via TradingView.
The next 24 hours will be vital to understanding Bitcoin’s mid-term outlook.
Featured image from Unsplash. Charts from TradingView.
