Bitcoin’s price has stagnated over the past few weeks and months, with buyers and sellers unable to gain firm control over the near-term outlook.
BTC has now risen to $ 10,800 in the last few days and weeks, which has proven to be strong resistance.
If this level remains strong as resistance, the question of whether or not to break the above should offer an in-depth look at BTC’s near-term outlook.
A solid break above this level could open the gates for the cryptocurrency and push it towards $ 11,000
Ultimately, the question of how Bitcoin reacts to the selling pressure here determines its medium-term trend.
Bitcoin and the entire cryptocurrency market have struggled to achieve sustained momentum in both directions over the past few weeks and months.
Analysts are now realizing that the next market trends are likely to depend largely on how Bitcoin reacts to a few key levels.
$ 10,800 is the first resistance level to break, with the region between $ 11,000 and $ 11,200 being the next zone buyers will have to leave behind.
One trader also comments that Bitcoin is still stuck below its 200-day EMA – a trending level that needs to be regained in the near future.
Bitcoin’s momentum stagnates as buyers struggle to break through $ 10,800
At the time of writing, Bitcoin is trading at $ 10,680. This is roughly the price it was traded at for the entire past day.
Whether bulls or bears are able to step up and take control of their near-term outlook should largely depend on how they react to a test at that level.
If it passes, the next major price region to watch closely is between $ 11,000 and $ 11,200.
Analyst: BTC remains stuck below major 200-day moving average
One level that has proven to be trending time and again throughout history is the 200-day moving average.
Sustained bursts of trading above or below this level have contributed to assets like Bitcoin showing multi-year trends.
Bitcoin is currently trading below this level, leading one analyst to conclude that breaking above this level is essential to the cryptocurrency’s near-term prospects.
The analyst jokingly referred to the chart below:
“The only enemy of Bitcoin is the 200ema resistance of the cloud. Let’s break up, please, I miss the smell of financial freedom. “
The overall market trends in the coming days and weeks could therefore depend solely on Bitcoin’s reaction to this crucial technical level.