Bitcoin is currently showing some notable signs of strength after the weakness seen in recent weeks.
The cryptocurrency is outperforming the altcoin market, with both major altcoins such as Ethereum and Chainlink – and smaller ones – all blinking signs of massive weakness over the past few days and weeks.
BTC’s resurgence amid a turbulent and bloody market is the ultimate proof of strength, indicating that investors still consider it the most reliable and secure digital asset in times of uncertainty in the emerging market.
An analyst noted that this recent rebound happened shortly after an incredibly strong daily close posted by the crypto yesterday.
He notes that while the bearish momentum that previously led it down has stalled, and the benchmark cryptocurrency is now testing the neckline of an earlier head and shoulders pattern.
Whether or not Bitcoin is capable of breaking above USD 11,000 should provide important insights into the near-term outlook.
Bitcoin is gaining market-wide turbulence and pushing higher
At the time of writing, Bitcoin is trading upward a little over 1% at the current price of $ 10,930. This marks a notable rise from the recent lows of $ 9,900 set last week.
It’s important to note that these lows have been tested on multiple occasions, leading many analysts and investors to believe a breakthrough among them was imminent.
That said, the cryptocurrency has since posted a strong rebound of $ 1,000 from these lows, indicating that bulls are not ready to relinquish control of the trend in the near term.
It now appears that where the following cryptocurrency trends are hinging somewhat on the sustained response to USD 11,000 which just happens to be where it is facing some strong resistance.
A strong and decisive break above the lower USD 11,000 region would significantly strengthen the asset’s near-term outlook.
BTC’s latest daily close is a blow to Bears’ momentum
While we are talking about Bitcoin’s near term outlook, one analyst noted that the daily close above USD 10,500 has clouded the waters on the cryptocurrency’s short-term trend.
He notes that for bulls to take full control, it’s imperative that they shatter the neckline of the previous head and shoulders pattern, which sits at $ 11,000.
“Bitcoin – daily close above the most critical support area of 10.5k makes the water really clouded. The bear’s momentum has certainly slowed now, usually leaving a heel range of 10.5km to the previous 11km HnS neckline, ”he said.
Featured image from Cheds. Chart via TradingView.
How Bitcoin trends should provide insight into the medium-term outlook of the aggregated crypto market in the coming days.
Featured image from Unsplash. Charts from TradingView.