Bitcoin Needs to Reclaim This One Crucial Level to See Further Upside.
Bitcoin has been flashing signs of overt weakness throughout the past few hours, dropping as low as $10,400 before facing an influx of buying pressure that allowed its price to surge back up to highs of $10,800.
The cryptocurrency now appears to be caught within a short-term consolidation phase as bears and bulls fight for control over its near-term trend.
This may cause it to see some range-bound trading in the near-term, but analysts are noting that its outlook still remains positive as long as it continues defending one crucial support level.
That being said, how BTC closes its daily candle should offer significant insights into its near-term outlook, as a failure for it to close above $11,000 could be highly damaging for its market structure.
One analyst believes that this type of close will lead it to plunge down towards the lower-$10,000 region, which is where it may trade for an extended period of time.