All eyes on Bitcoin as the cryptocurrency remains indecisive. Are we going to see a price dump in the coming days or will buyers take back control of the market and push the price back up to the $12,000 region?
These questions and more are what I will be answering to the best of my ability in this Bitcoin analysis.
I will also be analyzing the price action currently developing on the Bitcoin chart, and the important Bitcoin key support and resistance levels you should be watching out for in the coming days.
The Bitcoin Bearish Volume Is Drying Up
The Bitcoin bears have been unable to push the Bitcoin price down below the $11,400 key support I talked about in a previous analysis titled “Bitcoin Just Triggered My Entry. Sell Now?“
Instead what we are seeing the Bitcoin price do is bounce off of this key support level, telling us that Bitcoin buyers are still very bullish on the cryptocurrency. But how high can they push the price up?
We are also seeing a rapid decline in the Bitcoin trading volume occur in the market as the Bitcoin bulls and bears continue to battle for dominance.
If this trading volume continues to decline, then there is a very high probability that we might experience a ranging market in Bitcoin till the price decides to either breakout to the upside or to the downside.
Will The Bitcoin Price Surge Back T0 $12,000?
The most important resistance level I am watching to see the Bitcoin price breakthrough and close above for me to have a bullish bias on the cryptocurrency is the $11,806 price region.
This price region is very important because it as served as both support and resistance for the Bitcoin price in the past. And a break above that $11,806 resistance could mean that we might see the Bitcoin price surge to the $12,000 price region in the coming days.
But until the price actually breaks through the $12,000 resistance, my bias for Bitcoin still remains bearish for the short term.
Beware Of A Potential Ranging Market
While we wait for a decisive Bitcoin price breakout either to the upside or downside in the coming days, it is important you do not jump the gun and enter a trade too early, especially with the current market conditions we are experiencing on Bitcoin (low trading volume, strong key levels, no decisive trend).
If this continues, then there is a high probability that the Bitcoin price might actually range and trade sideways for a while until trading volume picks up again.
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.