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Bitcoin’s bulls are flexing their strength today, pushing the benchmark digital asset towards $11,000 as they attempt to reverse the recent downtrend that it has been caught within.
There’s no doubt that today’s move – coupled with that seen yesterday – is positive for the crypto’s near-term outlook, but it is important to keep in mind that BTC has yet to break above its key $11,000 resistance.
This price region was previously strong support, and a failure for it to be decisively reclaimed could prove to be dire for the cryptocurrency.
One analyst observed that BTC is also currently trading below a key technical resistance level, with its reaction to this level likely offering some insights into its near-term trend.
While a rejection here would be grim, a break above it could catalyze an explosive move higher.
There are also some fundamental factors working in the benchmark digital asset’s favor, including the fact that there are currently more people selling their BTC at a loss than at a profit – signaling that recent top buyers are taking this upswing as an opportunity to exit.
History reveals that this is a bullish trend.
Bitcoin Shows Signs of Strength as Buyers Take Aim at $11,000
At the time of writing, Bitcoin is trading up just under 2% at its current price of $10,830. This marks a notable upswing from recent lows of $9,900, but it is still trading well below its $12,400 yearly highs.
While speaking about the digital asset’s near-term outlook, one analyst explained that it may all depend on its reaction to the upper boundary of its cloud, which sits just above where it is currently trading.
“The cloud doing its thing… Nuke past it or retrace?” he asked while pointing to the chart seen below.
Image Courtesy of Teddy. Chart via TradingView.
Recent Buyers are Selling BTC at a Loss; Here’s Why This is Bullish
Another trend to be aware of is that recent Bitcoin buyers are currently taking this uptrend as an opportunity to exit their positions.
One trader is noting that this is a historically bullish occurrence, as it typically takes place during the early stages of a bullish trend reversal.
“We almost have more people selling at a loss than for profit. This is bullish in case you didn’t know,” he explained.
Image Courtesy of Byzantine General. Chart via TradingView.
The confluence of growing technical strength coupled with bullish trends surrounding the crypto’s investor base seems to indicate that upside may be imminent.
Featured image from Unsplash. Charts from TradingView.