If you look at the price movement of Bitcoin in the past 2 to 3 weeks, you will realize that it has hardly ever traded above $ 11,000. It briefly went above $ 11,000 and thereafter it fell down again. However, currently, it is trading around $ 11,500.
These levels are pretty crucial. The 1st resistance was set around $ 11,200. Ever since this resistance has been surpassed, there are numerous other resistance levels in between $11,400 to $11,700.
Only when $ 11,700 has been crossed convincingly, you can be sure that it will move up even more. The volumes have picked up in the last 48 hours as well.
Technical chart indicators:
When you look at the technical chart of Bitcoin, you will realize that it is forming an inverted head and shoulders pattern. The neckline of the inverted head and shoulder pattern is around $ 11,600.
This is the reason why any move above $ 11,700 on a convincing basis will increase the price significantly. This will also result in significant volumes being generated as well.
Many traders are actively looking at these levels to decide whether they should go long on Bitcoin or whether they should go short of Bitcoin.
If indeed, it is able to cross $ 11,700 and remain above it for a long period of time, you can be sure that it will move up significantly. This will mean that from the bottoms of $ 5500 which were created in February, Bitcoin will have moved up by more than 120%. Currently, as well, it is providing a return of around 100%.
On the downside, if it is not able to sustain above $ 11,000, it can go all the way back to $ 9300. $ 9300 is the recent low which it made after falling from $11,000.
This is the reason why these levels are pretty crucial for Bitcoin. If it is able to convincingly break these levels, it will, in turn, become easier for Bitcoin to scale up to higher levels. The all-time high for Bitcoin remains around $ 20,000.
It is still down significantly from those levels. Even from the current levels, it has to rise by almost 80% in order to reach the older highs.
Many traders are also trying to gauge the momentum. If indeed the momentum is strong, it will be able to easily cross the resistances and move higher.