{"id":5000,"date":"2020-10-12T16:00:15","date_gmt":"2020-10-12T16:00:15","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=446194"},"modified":"2020-10-12T16:00:15","modified_gmt":"2020-10-12T16:00:15","slug":"bitcoin-reaches-critical-resistance-zone-will-it-spark-a-bearish-reversal","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bitcoin-reaches-critical-resistance-zone-will-it-spark-a-bearish-reversal\/","title":{"rendered":"Bitcoin Reaches Critical Resistance Zone; Will It Spark a Bearish Reversal?"},"content":{"rendered":"

Bitcoin’s price saw a notable rebound today that allowed it to recover from an overnight dip and rally to fresh local highs within the $11,500 region.<\/p>\n

This push higher is promising because it is finally allowing Bitcoin<\/a> to confront the crucial resistance it faces between $11,600 and $12,000, which is a resistance zone that analysts have been closely watching for quite some time.<\/p>\n

If it breaks through this region in the coming days, it could signal that a fresh leg higher for the entire market is imminent, potentially sparking a serious bout of buying activity amongst investors who had been sitting on the sidelines.<\/p>\n

That being said, one analyst is expressing caution when it comes to the crypto’s near-term outlook. He believes that until there’s a break above roughly $11,800, it is too early to flip fully bullish on BTC.<\/p>\n

Bitcoin Shows Signs of Strength Following Overnight Decline<\/strong><\/h2>\n

At the time of writing, Bitcoin is trading up over 1% at its current price of $11,500. This marks a notable surge from daily lows of $11,200 that were set overnight during a sharp selloff.<\/p>\n

This attempted selloff didn’t last for long and didn’t quite fill the CME gap currently sitting within the $11,100 region.<\/p>\n

Some analysts believe that this level will be filled before Bitcoin<\/a> can see a sustainable uptrend, but traders said the same thing about the gap at $9,700 – which was never filled.<\/p>\n

Where Bitcoin trends next will depend largely on how buyers handle the selling pressure that exists just above where the crypto is currently trading.<\/p>\n

Any rejections here could be grave and potentially lead to a sharp fear-induced selloff, as analysts have been watching the resistance at $11,600 for quite some time.<\/p>\n

Here’s the Key Resistance Zone to Watch<\/strong><\/h2>\n

While sharing his thoughts on Bitcoin’s present outlook, one analyst explained that he is closely watching the price region between $11,600 and $11,800 due to the heavy selling pressure here.<\/p>\n

He notes<\/a> that it is too early to flip fully bullish on BTC until this region is surmounted<\/a>.<\/p>\n

\n

“I was all for jumping into longs at mid 10k’s, while we were at a key support level. But now we are on the other end. Proceed with caution young bullas,” he said.<\/p>\n<\/blockquote>\n

\"Bitcoin\"<\/p>\n

Image Courtesy of Credible Crypto. Chart via TradingView<\/a>.<\/pre>\n
Where the entire market trends in the coming few days and weeks will likely depend entirely on its reaction to the selling pressure it faces just above its current price.<\/p>\n
Featured image from Unsplash.\nCharts from TradingView<\/a>.<\/pre>\n","protected":false},"excerpt":{"rendered":"
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