Bitcoin and the aggregated crypto markets have been incurring significant volatility as of late, and much to the chagrin of bears, most of this volatility has been positive over the past several days — with BTC posting a strong recovery from its recent lows of $9,500.
Bitcoin is now pushing up against what one analyst describes as a “heavy resistance zone” that may prove to be insurmountable – but if BTC does manage to break above this level, it may soon set fresh year-to-date highs.
Bitcoin Runs To $10,700, But Recent Gains May be Fleeting
At the time of writing, Bitcoin is trading up nearly 4% at its current price of $10,780, which marks a major extension of the momentum that BTC first gained when it tapped lows of $9,500 after a bout of capitulation last Wednesday.
Over the past 24-hours, Bitcoin has been able to climb significantly from lows of $10,300, but it is highly probable that it will face strong resistance at $11,000, which may slow its upwards ascent.
Josh Rager, a popular crypto analyst on Twitter, explained in a recent tweet that Bitcoin’s ability to hover around its key resistance levels may prove to be a bullish thing, saying:
“$BTC Update: Tapping yet another time at resistance, this tends to be bullish when price hovers around resistance for multiple tests. I want to see price push up over $11k again for with lower highs on the trend of lower time frames.”
Presently, it is highly likely that analysts will closely watch to see whether or not Bitcoin is able to decisively climb above $11,000, as a failure to do so could lead to a continuation of its recently incurred downwards momentum.
Will Heavy Resistance Force BTC to Plunge Lower in Coming Days and Weeks?
Assuming that $11,000 does prove to be a strong level of resistance, it is likely that Bitcoin will once again revisit the mid-$9,000 region, as this is where it previously found strong support after facing capitulation last Wednesday.
Crypto Michaël, another popular crypto analyst on Twitter, explained in a recent tweet to his over 40k followers that he believes the resistance that exists in the upper-$10,000 region will be quite strong.
“$BTC #BITCOIN I’m watching this for a possible play (already a play, missed the wick upwards the past half hour). I don’t think we’re breaking above red zone here as that’s back again a heavy resistance zone. If we do, targets are $11,600 and maybe $14,000,” he noted.
The next several hours will likely prove to be very illuminating, as Bitcoin’s reaction to the key resistance zones that lie directly ahead of it will determine whether or not fresh year-to-date highs are imminent, or if it will once again dip below the five-figure price region.