Bitcoin's bulls are flexing their strength today and pushing the benchmark digital asset towards $ 11,000 as it tries to reverse the latest downtrend it caught.
There is no doubt that today's move, coupled with what was seen yesterday, is positive for the short-term outlook for the cryptocurrency, but it's important to remember that BTC has not risen above the $ 11,000 key resistance.
This price zone was previously a strong support, and its failure to definitively recover can be terrible for the cryptocurrency.
An analyst observed that BTC is currently trading below a significant technical resistance level, and its response to this level is likely to provide some insight into its short-term trend.
While a refusal here is brutal, a break on it can catalyze a higher explosive action.
There are also some key factors working in favor of the comparative digital asset, including who is currently selling their BTC at a loss rather than profit – indicating that recent top buyers are taking this rise as an exit opportunity.
History reveals that this is an upward trend.
Bitcoin Shows Signs Of Strength As Buyers Target $ 11,000
Bitcoin is trading slightly below 2% at its current price of $ 10,830. This marks a notable rise from the recent $ 9,900 lows, but still $ 12,400. It is trading well below its highest level.
An analyst talking about the short-term outlook of the digital asset he explained that all this may be due to his reaction to the upper limit of his cloud just above where he is currently trading.
"The cloud is doing its job … Nuke past it or back off?" he asked, pointing to the table below.
Image Courtesy of Teddy. Chart via TradingView.
Recent Buyers Sell BTC at Loss; That's Why Taurus
Another trend to be aware of is that recent Bitcoin buyers are currently seeing this uptrend as an opportunity to exit their positions.
A merchant note taking This is a historically bullish event as it typically occurs in the early stages of an uptrend reversal.
“We almost have people who are selling for loss rather than profit selling. If you don't know, it will rise, ”he explained.
Image Courtesy of Byzantine General. Chart via TradingView.
The combination of increased technical strength combined with the bullish trends surrounding the cryptocurrency's investor base seems to suggest that the upside may be close.
Featured image from Unsplash. Charts from TradingView.