Bitcoin bulls have been able to catalyze some slight momentum today that erased all of the losses that came about as a result of yesterday’s dip.
Analysts are now noting that the benchmark cryptocurrency may be well-positioned to see further near-term upside, which could come about as a result of the strong support that was confirmed at $11,150.
This is the lowest price BTC fell to yesterday following the Fed-induced selloff. The visit to this level was brief, and the cryptocurrency nearly instantly rebounded after it was touched.
This is the second time that the $11,100 region has been confirmed as strong support, which is a positive sign signaling that further upside may be imminent in the near-term.
The defense of this horizontal support level also coincided closely with the defense of a critical moving average that was tested.
Because bulls ardently guarded against this level being broken below, analysts are now growing widely optimistic that an extension of Bitcoin’s mid-term uptrend is now imminent.
Bitcoin Defends Crucial Support Level During Latest Decline
Yesterday, Bitcoin’s price incurred some intense turbulence that caused it to rally up towards $11,600 before facing a swift rejection that sent it reeling down to lows of $11,150.
This is an important support level that has been tested on a few occasions in the past. Most recently was three days ago when BTC plunged from highs of nearly $12,000. It ultimately dropped to $11,100 before it was able to rally back towards $11,600.
This support level was once again confirmed yesterday, and it now appears that Bitcoin may be well-positioned to further extend its ongoing upswing.
One analyst observed that the defense of this support also marked a defense of the crypto’s critical 200-day moving average.
While this level was being tested yesterday, he said:
“4h testing 200ema as we speak. Bulls sure as hell do not want to close below here, could initiate multi-day correction; not fun…”
Image Courtesy of Teddy. Chart via TradingView.
Analysts Grow Optimistic Regarding BTC’s Near-Term Outlook
Another popular trader explained that the cryptocurrency’s high time frame outlook remains incredibly strong despite the recent dip.
Specifically, he points to the continued defense of the lower-$11,000 region as a bull-favoring sign.
“BTC / USD: Still no reason go panic, HTF still looking good for another leg upwards, if we do see support get taken out then $10,500 could be next, but until then we are good… The more we hold the more bullish I’m getting at this level.”
Image Courtesy of Cactus. Chart via TradingView.
Unless Bitcoin faces another harsh rejection at its $11,600 resistance level, it will likely climb higher from its current price levels in the near-term.
Featured image from Unsplash. Charts from TradingView.