Bitcoin price breaks $11K, crypto traders optimistic about BTC’s action
Bitcoin slumped to $10,500 in the first week of October and has recovered above $11,000. Traders explain what happens next for BTC.
The price of Bitcoin (BTC) has seen a recovery during the past week, surging by nearly 6.5% since Oct. 2. The resilience of the dominant cryptocurrency has traders pleasantly surprised, as many analysts anticipated a larger pullback.
Following BTC’s rebound above the critical $10,500 support level to just over $11,000, the sentiment is turning optimistic.
In the near term, traders believe $10,500 remains the most critical level for Bitcoin for numerous reasons.
Most notably, it represents a historically important support level in both the ongoing cycle and previous price cycles.
Throughout 2019, BTC consistently peaked at $10,500 and saw brutal rejection afterwards. Given that the $10,500 level has served as a heavy resistance area in the past, it is considered a strong support level.
Whale clusters or bubbles also show that defending $10,500 is key for Bitcoin to retain its momentum. Whale clusters, tracked by researchers at Whalemap, form when whales buy Bitcoin at a certain level.
Recently, whale clusters have emerged in the $10,407 to $10,570 range, which means whales are likely accumulating.
Since whales tend to trade with a longer time frame, there is a decent probability that the $10,570 area will remain as a strong support level.
In the medium term, traders foresee $13,000 as the main hurdle before Bitcoin sees a prolonged rally.
According to the pseudonymous trader known as “Salsa Tekila,” previous macro price trends indicate $13,000 is the roadblock to an all-time high.
If BTC continues to stabilize and consolidate above key support levels, the trader said a rally to a new record-high could occur in the longer term.
Whether Bitcoin can stay above $10,500 and eventually break out at $11,000 to test $13,000 remains the biggest challenge.
Between the first five days of October, various negative macro factors slowed the momentum of BTC. Since then, particularly following Square’s high-profile investment into Bitcoin, the top cryptocurrency has recovered.
In the fourth quarter, the bullish scenario hinges on BTC’s strength above $10,500 and whether it can surge past $11,000.
Read the full topic at
https://cointelegraph.com/news/bitcoin-price-breaks-11k-crypto-traders-optimistic-about-btc-s-action
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