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Traders explain why $ 11,500 is the “most important” level for Bitcoin

Bitcoin price (BTC) is hovering around $ 11,300 and is approaching a fundamental technical level, which some traders argue that they make $ 11,500 “the most important level” to confirm a new bullish cycle for BTC.

If Bitcoin stays above $ 11,500, by August 10 it would be the highest weekly close for the BTC price since mid-2019. The weekly candle in August 2019 closed slightly above $ 11,500. In other words, a close above this level would print the best weekly candle since the 2017 bullish rise.

A close above $ 11,500 would break the structure of the Bitcoin market

Traders, meanwhile, are watching the upcoming weekly candle close closely because many believe it could decide whether the bull market continues. Until BTC cleanly exceeds $ 11,500, technically there is strong resistance at the top. A pseudonymous trader said:

“USD 11,500 is the most important level”

Bitcoin weekly price chart with main resistance and support levels. Source: Immortal Technique

When Bitcoin’s price hit $ 12,000 on August 2, some investors argued that BTC had already broken its market structure. If so, theoretically BTC has room to rise to higher resistance levels at $ 14,000 and $ 17,000.

Sven Henrich, a NorthmanTrader trader, believes that Bitcoin could hit $ 17,000. For the technical case of a prolonged climb to be intact, Henrich said that BTC has to stay above $ 10,500.

As long as the price of Bitcoin stabilizes above $ 10,500, even if BTC falls back, Henrich said that bullish rise to $ 17,000 possible. Said than:

“First of all, notice that a breakout is bullish if it can be successfully defended, which means that as long as $ BTC can remain above the breakout trend line it has a significantly higher technical space … But that within A potentially much more bullish pattern has emerged from the consolidation of the larger peak, one that would target close to $ 17,000. ”

A technical case for an extended Bitcoin bull trend

A technical case for Bitcoin’s extended bullish trend. Source: NorthmanTrader

Variables for the bullish and bearish case

Short term, analysts point to several macro factors that could boost sentiment around Bitcoin. In particular, the value of the US dollar is falling.

Overall, trade volumes in various markets, including retail and institutional, are increasing. For example, the open interest of CME Bitcoin futures market has just hit a record high. Despite the massive liquidations on August 2, the BTC has remained relatively stable above the key technical support level of $ 10,500.

Although there are more factors that seem to drive Bitcoin’s bullish case, there are two risks that BTC faces in the short term. First, Until $ 12,000 is clearly broken, the risk of overhead resistance remains. Secondly, various technical measures including financing rates and greed index (actually to 75% or “greed”), point to an overheated rise.

However, it is not known whether positive chain parameters, such as the number of “HODLers” that have reached a record high, can outweigh the potential risks. For now, Until the weekly BTC candle closes above $ 11,500, the market remains cautiously optimistic as the focus is on the US dollar and Actions.

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