- Bitcoin has found some stability within the mid-$11,000 region following its recent dip towards $11,100
- The cryptocurrency is now consolidating as it struggles to maintain its momentum, with bulls and bears largely reaching an impasse as it hovers at $11,500
- Analysts are now noting that the benchmark cryptocurrency could be well-positioned to see significant near-term upside if bulls can defend a crucial technical level
- A failure for it to bounce here, however, could cause it to plunge lower
- As such, BTC now appears to be trading at a “make or break” level
Bitcoin and the aggregated crypto market have seen some mixed price action throughout the past few days and weeks.
Following the news about the Federal Reserve’s decision to let inflation run above 2% going forward, BTC’s price bounced up to highs of $11,600. This surge was fleeting, however, as the crypto rapidly retraced down to lows of $11,100 shortly after that.
This turbulence struck a blow to the cryptocurrency’s technical strength, but buyers were able to guard against it seeing any further downside.
They have since erased nearly all of the losses that came about as a result of traders fading the Fed news, and BTC is now stable at $11,500.
Analysts are noting that where it trades next will depend largely on how it reacts to one crucial level – making it the “moment of truth” for BTC.
Bitcoin Struggles to Gain Momentum as Consolidation Phase Kicks Off
At the time of writing, Bitcoin is trading down marginally at its current price of $11,490, which is around the price at which it has been trading throughout the past few days and weeks.
Earlier today bears attempted to gain control of BTC when they pushed it as low as $11,400.
This dip was fleeting, however, as the cryptocurrency quickly rebounded back towards $11,500. From this point on, it has been caught within an extended bout of sideways trading.
Because Bitcoin remains caught within its macro trading range between $11,000 and $12,000, which of these levels is broken first should provide insight into its mid-term trend.
Analyst: It’s Now the Moment of Truth for BTC
While speaking about the cryptocurrency’s near-term outlook, one analyst explained that it is now the “moment of truth” for Bitcoin, as a failure to bounce here could strike a lethal blow to its technical strength.
“Moment of truth (4h) 1) Broke resistance 2) Retraced 3) Testing resistance as support 4) bounce or doom?”
Image Courtesy of Teddy. Chart via TradingView.
How the cryptocurrency trends in the coming few hours should offer significant insights into its near-term outlook.
Featured image from Unsplash. Chart and pricing data from TradingView.