If Bitcoin Defends One Crucial Level, It May Soon Push Significantly Higher

• Bitcoin appears to be forming a new consolidation phase as it trades between lows of $10,000 and highs of $10,800
• The cryptocurrency has been trading squarely between these two levels for the past several hours, being unable to post any notable rebound from yesterday’s downturn
• The weakness that it expressed yesterday struck a serious blow to its near-term outlook, as it showed that the benchmark cryptocurrency might not have enough strength to maintain its position within the five-figure price region
• One analyst is now noting that the continued defense of one key level could be enough to send Bitcoin surging significantly higher

Bitcoin and the entire cryptocurrency market are stabilizing following the intense bearishness seen yesterday.=

The strength BTC has expressed so far has been rather tempered, but bulls have been able to guard against any dip below $10,000.

One analyst is now noting that the cryptocurrency’s descent happened to grind to a halt the second it reached the upper boundary of its cloud formation, with this level acting as strong support.

He believes that a sustained bout of trading above this level could propel BTC significantly higher, helping it to reverse the technical damage done by this latest selloff.

Bitcoin Shows Signs of Weakness as Analysts Closely Watch Reaction to $11,000

At the time of writing, Bitcoin is trading up 3% at its current price of $10,450. This is around the price at which it has been trading throughout the past several hours.

Bulls were able to stop it from breaking below $10,000 yesterday, but have not yet been able to catalyze any type of strong movement towards its near-term resistance around $11,000.

One analyst is particularly looking towards its potential reaction to any visit to the lower-$11,000 region.

“Here’s my BTC TA: 1) Neck-line 11’260$, bearish until reclaim and hold above. 2) 8’140$ area = yearly pivot, I’d looks for buys.”

Image Courtesy of SalsaTekila. Chart via TradingView.

BTC Defends Key Technical Level Throughout Ongoing Selloff 

Another analyst observed that Bitcoin has been defending against a dip below the upper boundary of its weekly cloud formation, which exists around $10,000.

“You can’t make this up, dumped stopped upon contact with the weekly cloud. Hopefully it holds,” he explained while pointing to the below chart.

Image Courtesy of Teddy. Chart via TradingView.

If Bitcoin can continue holding above $10,000 in the near-term, bulls must step up and propel the cryptocurrency up towards, and past, the lower-$11,000 region.

Featured image from Unsplash.
Charts from TradingView.