Bitcoin’s unrelenting consolidation phase may not last for too much longer.
Analysts are now explaining that the cryptocurrency is beginning to flash some subtle signs of bullishness as it trades around $9,300, with these factors potentially helping to boost it higher in the days and weeks ahead.
While looking towards BTC’s weekly market structure, analysts are observing some tempered signs of strength.
The same can be said on lower time frames as well, as the crypto is currently in the process of breaking above a heavy resistance region that has held strong throughout the past couple of weeks.
BTC’s multi-month bout of consolidation also has allowed it to form significant overhead liquidity, which has led some analysts to note that an upside movement is imminent.
This liquidity could help send the benchmark cryptocurrency as high as $12,000 in the weeks ahead – according to one respected trader.
Bitcoin’s Macro Market Structure Shows Signs of Strength
At the time of writing, Bitcoin is trading up marginally at its current price of $9,320. The cryptocurrency is currently attempting to shatter the heavy resistance it previously faced at $9,300.
This has been an important level for quite some time now, as it has marked the upper boundary of the trading range between $9,000 and $9,300 that BTC has been trading within.
The move past this level has catalyzed rejections many times throughout the past couple of weeks, and whether or not buyers are able to guard against this should be quite revealing.
Yesterday, for instance, the crypto rallied as high as $9,350 before facing a swift rejection that caused it to reel down towards $9,100.
Bulls do seem to be apt to retest this level, and a break about it could catalyze further gains.
While looking at Bitcoin’s weekly market structure, one popular cryptocurrency analyst explained that he is seeing multiple signs of bullishness.
“BTC weekly chart currently looks bullish. Weekly support (green box) held for multiple retests over weeks, and this week price didn’t even make it back down there. Weekly close is higher than the previous two weeks. BTC could still go lower, sure, but what’s not to like here?”
Image Courtesy of Josh Rager. Chart via TradingView.
This “Overhead Liquidity” Could Help Send BTC Flying Higher
Another respected analyst recently observed that Bitcoin has been establishing significant overhead liquidity throughout the past several weeks and months.
This liquidity rests above its $10,500 highs and could help propel the digital asset significantly higher in the days and weeks ahead.
“Leaning bullish atm due to continuous failed selloffs into 1D demand & the 0.618 retracement of the current low & high, trapping shorts & sellers. Over 2 months now spent in this range, recent PA leaving a lot of overhead liquidity. I think we take that out next,” he explained.
Image Courtesy of HornHairs. Chart via TradingView.
Unless Bitcoin faces another harsh rejection, it does appear to be a strong possibility that it will see further upside in the near-term.
Featured image from Shutterstock. Charts from TradingView.