- Bitcoin has been facing some mixed price action as of late, with buyers and sellers both engaged in a heated battle for control of its near-term outlook
- Despite attempting to break below its last-ditch support between $9,900 and $10,000, BTC is now pushing back towards its key $11,000 resistance region
- Where the cryptocurrency trends next may depend largely on its reaction to this level
- One trader believes that Bitcoin may first take out a “liquidity cluster” that sits around $10,600 before it can surge higher
- If this dip does occur, it would also allow BTC to retest its 50-day moving average
Bitcoin is currently stable within the upper-$10,000 region, with a combination of weakness in the stock market and strong resistance at $11,000, slowing its ascent.
The cryptocurrency’s present stability comes close on the heels of its strong push from the lower-$10,000 region, which uncovered significant strength amongst the crypto’s buyers.
Whether or not it is able to maintain its momentum and shatter the resistance between $11,000 and $11,100 may depend largely on its reaction to a key price region just below where it is currently trading at.
One analyst is pointing to a “liquidity cluster” at $10,600 as a near-term target, noting that a visit to this level would clear this liquidity and allow BTC to test its 50-day EMA.
The confluence of these factors could then allow it to resume its uptrend and break above $11,000.
BITCOIN’S MOMENTUM STALLS FOLLOWING $11,100 REJECTION
At the time of writing, Bitcoin is trading down just over 1% at its current price of $10,800.
The cryptocurrency is stable around its current price level, but both its bulls and bears are reaching an impasse as it struggles to garner any further momentum.
It appears that weakness in the stock market may be contributing to this, as all the benchmark indices are currently trading down between one and two percent.
HERE’S HOW LOW BTC MAY DIP BEFORE SURGING HIGHER
While speaking about the cryptocurrency’s near-term outlook, one trader explained that he is watching for a dip to the liquidity and 50-day EMA that both sit around $10,600.
“It really was a good spot to take profit. That liq cluster at 10600 probably gets taken out now. Would be a nice re-test of the 50EMA too.”
Image Courtesy of Byzantine General. Chart via TradingView.
Where Bitcoin trends next may be somewhat influenced by the traditional markets, but there’s no doubt that its ardent defense of $10,000 has boosted its technical outlook.