A recent market rally allowed Bitcoin to breach the resistance level at $10k for the first time after months of low volatility at around $9,500. The coin did not only breach the $10k mark, but it went beyond it, first to $11k, and then $12k.
Between these two crucial levels lies another which might be even more important — $11,5k — according to numerous traders.
Bitcoin shows signs of a pending bull cycle
After reaching the $12k mark, BTC price saw a correction that took it down to its current price at around $11,300. Due to its close proximity to $11,500, which acts as a pivotal technical level, many traders believe that reaching this level would be a confirmation of a new bullish cycle.
The crypto market is currently watching the coin’s performance with extreme care, as rising back to $11.5k and going above it would lead to the highest weekly close for BTC since June 2019.
The first weekly candle in August closed just above this level. If the second candle manages to close above $11.5k and the first candle, it would be the best one since 2017, and that has the market very excited about potential implications.
BTC could still go either way
Traders expect the coin to breach $11.5k barrier and start a new bull run, which is why they are calling this the ‘most important level on Bitcoin.’
When BTC hit $12k several days ago, many believed that the coin has already broken the key resistance, and that the next one could be at $14km or even $17k. This is not impossible, provided that BTC can stabilize above $10,500, and not go down to or below this level in days to come.
Bitcoin, as well as the rest of the crypto market, is currently at a crossroads. The next big trend can be bullish or bearish, depending on what will happen next. Technical indicators point towards bull run, however, even though there are risks that could once again cause the price to drop. However, for now, traders will simply have to wait and watch.
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