BTC Price Analysis: Is Bitcoin Ready To Break $11,000 As Crypto Market Cap Reclaims $350B?

Bitcoin price has finally broken bullish out of a 3-day channel (orange) and making good progress towards the psychological $11,000 level above.

The return of $9 billion to the global crypto market today has allowed BTC to return above $10,900 for the first time in 7 days and caused over $9 million worth of short liquidations on BitMEX – according to Datamish figures.

Avast majority of altcoins are also enjoying positive returns as Bitcoin lifts the rest of the market.

Despite the breakout, bearish traders are still putting up a strong fight right now. The $10,900 price point is seeing a lot of selling pressure bear down on the uptrend and is hindering Bitcoin’s current throwback rally attempt.

Price Levels to Watch in the Short-term

On the weekly BTC/USD, we can see that bulls are battling to break above the previous weekly open at $10,920. This is the first major resistance standing in the way of bitcoin’s progress towards $11K. Above this price point, we also have the $10,970 level which should create some friction in the uptrend.

Looking at the price action more closely on the 4-hour timeframe, we can see that bulls are trying to launch off from the 0.382 Fibonacci level at $10,832, which recently flipped from resistance to support. This is our first major support as BTC tries to reclaim $11K. If bears succeed in overcoming this key level, then we should expect to see prices fall back on the former channel resistance at around $10,810, and potentially dip back inside on to the 200 EMA (red) at $10,780.

Beneath that, we have the channel median line (dashed line) at $10,730 and the 50 EMA (blue) at $10,695 as additional supports.

Should bulls manage to break the $11,000 mark and maintain momentum, then the next test will be to conquer the 0.5 Fibonacci level at $11,150. With BTC already at 63 on the 4-hour RSI indicator, it’s possible that reaching this area will push the leading crypto into the overbought region and cause a sharp correction – be aware.

Total market capital: $353 billion

Bitcoin market capital: $201 billion

Bitcoin dominance: 57.0%

*Data by Coingecko

Bitstamp BTC/USD Weekly Chart

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BTC/USD chart via Tradingview

Bitstamp BTC/USD 4-Hour Chart

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About The Author

Ollie Leech 

Ollie had been involved in the cryptocurrency and blockchain industry since early 2017. Besides being a technical analyst based in the UK, Ollie is co-founding his first crypto-focused startup with SMC Capital. Contact Ollie: LinkedIn

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