Bitcoin has seen a strong move higher throughout the past 12 hours, which has come about as a direct result of the cryptocurrency’s strong weekly candle close.
Analysts are now noting that it may be positioned to see further near-term upside, as this latest bout of heightened buying activity led it above a crucial technical level that was previously lost as a result of the recent downtrend.
One trader, however, is noting that it may see a short-term throwback that leads it into its key near-term support level.
He contends that this will be imperative for the cryptocurrency to ultimately garner further buying pressure. After this is completed and its 200-day moving average is surmounted, he believes a rally to $12,000 could be imminent.
This possibility may revolve around Bitcoin’s reaction to the critical horizontal resistance between $11,00 and $11,300 that is about to be tested. Another rejection here would be grave.
Bitcoin Reclaims Key Technical Level Following Strong Weekly Close
At the time of writing, Bitcoin is trading up just over 1% at its current price of $10,900. This is around the price at which it has been trading at throughout the past 12-hours following its strong weekly candle close.
In the literal minutes following the candle close, BTC’s price was able to post a massive rally up towards $11,000, which has been sustained in the time since.
The lack of any intense rejection at this level is promising, but until it breaks above $11,300, it may still be poised to see further downside in the days and weeks ahead.
One analyst observed that the crypto was able to reclaim the upper boundary of its 4-hour cloud, which is bullish.
“4h above the cloud again, please let’s not repeat last week’s price action…”
Image Courtesy of Teddy. Chart via TradingView.
BTC Could Soon Rally to $12,000, But It May Plunge First
He believes that BTC must reclaim its 200-day moving average, as an ability to do so could then propel it past $12,000.
“BTC approaching key bias levels of mid-range of the whole 9800-12000 range. We could expect short-term throwback after intraday distribution inside LTF supply zone. Once MA200 support is reclaimed, we should see 12k,” he said while pointing to the below chart.
Image Courtesy of CryptoBirb. Chart via TradingView.
Featured image from Unsplash. Charts from TradingView.