- Bitcoin starts a sharp upsurge, but analysts believe it is still in a bearish zone
- $10,600 is very crucial to Bitcoin, and the bulls need to hold gains over that level
- There is strong pressure around the $11,000 range
Bitcoin News Today – Bitcoin (BTC) is currently surging as it has usually done over the past weekends. The price of the digital currency is currently over $11k, which is a pivotal hurdle point for the digital currency. While this is positive for Bitcoin in the near term, many analysts are still fearful that the digital currency is subject to sudden retracement.
One analyst said that the digital currency breaking below $10,600 on a weekly timeframe could trigger one such retracement. The $10,600 mark is very important to BTC, as prices within that range have marked three previous tops to mid-term rallies.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Bulls Need to Prevent a Break below $10,600 for More Upside Moves
Bitcoin needs to prevent losses below the $10,600 support on the weekly timeframe. A break below that level could pave the way for further losses towards the $10k mark, and then towards the $8k mark according to a crypto trader. The trader shared a chart that shows that BTC should maintain the support of $10,600 moving forward to maintain its bullish bias. He said:
“No matter how good (or bad) the low timeframes look, the $10.6k area is still one of the most important areas on the chart. This week closes below it? I will assume top is in and we will trade towards $8k. We close above it? I’ll close shorts and see what happens next.”
Bitcoin Is Still Bearish on the Short-term Timeframe
On the near term outlook of the digital currency, the same trader is also bearish, referencing clear technical pressure around the $11k mark. Regarding the recent price action, he said:
“Closed the rest of my adds for an avg. gain of $150, I wanted to see a strong breakdown, doesn’t look like I’m going to get it and I’ll be out tonight, so can’t monitor. Looks like there will either be better opportunities later or safer opportunities lower down.”
Other analysts and traders have also noted that there is a huge possibility that BTC tops in the present price range because it is acting as historical support in August. For example, the series of corrections that happened all through last month ended in the $11k to $11,300 range. If the digital currency fails to reclaim that level, it may confirm expectations of a bearish retracement back towards the lows of $10,000.
At press time, the major support for the digital currency is close to $10,600, with its immediate support at $10,900. Bitcoin has tried to break over the $11k mark several times over the past few weeks, but it failed.