- Bitcoin has found itself caught within a consolidation phase ever since its price bottomed at $9,900 yesterday
- This level has proven to be major support on multiple occasions throughout the past few days and weeks, suggesting that it may ultimately prove to be a long-term bottom
- Analysts are now noting that the cryptocurrency may be well-positioned to see significantly further upside in the days and weeks ahead
- That being said, how it continues reaction to $10,000 as its weekly close fast approaches will offer significant insights into its mid-term outlook
Bitcoin and the aggregated cryptocurrency market have been seeing mixed price action in recent weeks, with BTC rallying to $12,400 last week before beginning a descent that would lead it down to lows of $9,900.
Analysts believe that the cryptocurrency could be positioned to establish these lows as a long-term bottom, but whether or not it can do so will depend largely on its imminent weekly close.
One trader believes that a weekly close above $10,000 will bolster Bitcoin’s mid-term outlook and allow it to start climbing higher.
Bitcoin Defends Crucial Support Level as Weekly Close Approaches
At the time of writing, Bitcoin is trading up marginally at its current price of $10,180. This is around the price at which it has been trading at throughout the past several days.
The support between $9,900 and $10,000 has been rather significant, as each dip into this region has been quickly absorbed by buyers.
Analysts are now noting that where the cryptocurrency trends next will likely depend on how it closes its weekly candle, which means that the coming few hours are crucial for determining its mid-term outlook.
The strength that BTC has been expressing throughout the past few days, however, does seem to bode well for its short-term price action.
Analyst: BTC Must Close Above $10,000 to Maintain Strength
While speaking about the cryptocurrency’s near-term outlook, one analyst explained that he is closely watching to see how Bitcoin continues reacting to $10,000.
He notes that a sustained bout of trading above this level could be all that is needed for it to rally higher in the week ahead.
“BTC: Has been the biggest pullback for the weekly chart since March and IMO was needed. 21% so far in the past three weeks and looking for the weekly to hold $10,000 for the weekly close today,” he explained.
Image Courtesy of Josh Rager. Chart via TradingView.
The coming few hours will likely prove to be pivotal for determining Bitcoin’s mid-term outlook.
Featured image from Unsplash. Charts from TradingView.