For the past few weeks, the BTC/USD pair has been caught in an intense bout of sideways trading. All attempts to either break above or below the upper-$11,000 zone were short-lived. Earlier this week, the BTC price rallied as high as $12,400 before it started a downside correction. The correction wave was such that the price plunged to lows of $11,600. This level has since acted as a strong support for the bulls.
Although the BTC price’s short-term outlook remains somewhat unclear, it is important to note that bulls have been able to defend a few key levels. This can be an indication that there may be an imminent upward move.
At press time, the flagship crypto is trading down a little over 2% at its current price of $11,610. For the past few weeks, BTC has been trading between $11,600 and $12,000. However, there was an instance where the bulls gained momentum and propelled the price up towards $12,400. After being rejected at the $12,400 level, the BTC price traded sideways for barely 2 days before stumbling back into its current range.
As to whether or not this current trading range will resolve in an uptrend, analysts are noting that a key ascending trendline has been guarded throughout this consolidation bout. Where the BTC price trends next will likely depend on its reaction to this trendline which it is currently trading above. If BTC continues to trade above this key trendline and possibly push higher, analysts believe that it could trigger an upside move.
One analyst, Teddy, posted a chart on Twitter showing BTC’s reactions to this line. He noted that it may aid BTC break out of an ascending triangle that it is currently caught within.
Another prominent trader known as Crypto Michael also noted that if BTC continues to trade above the line, it could soon tap a region that offers a prime shorting opportunity. He said he is preparing to short the region between $12,100 and $12,200.