Bitcoin and the aggregated cryptocurrency market have been caught in the throes of an unrelenting consolidation phase over the past few weeks
This has muddied the clarity that many analysts previously had regarding the strength of the market’s multi-week uptrend
It does appear that buyers got a much-needed boost overnight, however, as bulls were able to post a potent reaction to its key support
Analysts are now eyeing a few key factors for insight into what could come next, which play into bull’s favor
Bitcoin and the aggregated crypto market have shown some signs of strength throughout the past several hours, as buyers were able to guard against another attempt to push it below its key support level around $9,000.
Despite posting countless rejections at $10,000 in recent times, BTC’s ability to also hold above its crucial support despite many attempts to break below it is a positive sign.
Analysts are now noting that one technical indicator suggests that Bitcoin is caught within a clear uptrend over the past several months, and that it has shown no signs of ending despite the consolidation phase.
That being said, if buyers want to catalyze some intense momentum, it is imperative that they shatter $10,400 – which would create “fireworks.”
Bitcoin Buyers Defend Key Support During Overnight Decline
At the time of writing, Bitcoin is trading down just under 1% at its current price of $9,370. The crypto was flashing signs of weakness overnight when it dipped below $9,200, but the buying pressure here proved to be significant.
It is important to note that this slight volatility seen overnight has not offered any clarity into Bitcoin’s mid-term trend, but it did show that buyers still have some underlying strength.
As for what could come next for the crypto, analysts are claiming that BTC’s cloud formation still suggests it is in a clear uptrend.
That being said, one analyst is noting that eventually the trend will correct.
“Clear uptrend since April based on the cloud. Golden Cross = Green Cloud = Bull bias – Red box is the times that cloud nearly flipped bear, always saved by a miraculous scam pump… How long till it will cross again? Eventually greater trend will correct,” he said.
Image Courtesy of Teddy. Chart via TradingView
Here are the Levels BTC Needs to Break to See “Fireworks”
Until buyers are able to shatter the mid-$10,000 resistance that has been established, Bitcoin’s price action is simply “noise” – as one trader puts it.
He also notes that fireworks will ensue if Bitcoin breaks below $8,750 or above $10,400.
“Anything within red is noise – the fireworks will happen above/below the range,” he explained.
Image Courtesy of Teddy. Chart via TradingView
These are the crucial levels to watch in the near-term.
Featured image from Shutterstock.
Charts from TradingView.