Since the crash last weekend that saw Bitcoin (BTC) prices drop, more than $1.4 k in a few minutes, the asset has been struggling to reclaim its 2020 high above $12,000. Despite the pull back, BTC managed to recover back to the $11,200 region, hinting that bulls were still in control.
One of the core reasons behind BTC’s swift recovery was the growing demand fuelled by the COVID-19 pandemic and increasing tensions between the U.S.A and China.
The demand for Bitcoin among institutional players has also been on the rise with BTC futures open interest at the Chicago-headquartered CME Group surging to new highs. This was another factor that enabled swift recovery.
On the other hand, the last time $1 billion was liquidated in a BTC crash in May, the majority of indicators flipped to bearish levels and it took 22 days to recover.
The overall bullish sentiment about Bitcoin saw a bullish reversal pattern forming near $11,200 – $11,300 region after it traded sideways for almost three days.
BTC has since then tried to break past the resistance at $11,800, which several analysts believe to be the key to fueling a major rally towards new 2020 highs.
The number one cryptocurrency rallied as high as $11,784 before it retraced back to $11,650 after the $11,800 resistance proved to be too much for the bulls at that time.
But the bulls managed to fill the $150 gap on the volume profile visible range and pursue the completion of a W-bottom reversal pattern but failed to break past resistance.
If BTC is able to break the resistance at $11,800 the next resistance would be at $12,350, as most technical indicators are hinting at a strong buying pressure.
Prominent crypto trader Cheds believes that the digital currency has just broken a major bull pennant, and is on the way to levels as high as $27,000. A similar target was previously highlighted by Max Keiser, who also believes Bitcoin is making a move towards $30,000.
Another analyst known by the name of Benjamin Blunts, voiced similar opinions about the bullish sentiment surrounding BTC, as he believes the asset has broken several key levels and is reaching for new all-time highs, adding that the bears have been wrong about BTC.
As the Daily Chain had previously reported that whales have been accumulating massive amounts of Bitcoin throughout the past weeks, crypto commentator Cole Garner highlighted that BTC was flowing out of exchanges, adding that whales bought the recent selloff, which is extremely bullish.
Also, if Bitcoin manages to close above $11,400-$11,600, it would further strengthen the strong bullish sentiment.
For now, BTC has is trading at $11,712 and is ready to take a shot at the $11,800 resistance again. If the asset manages to break past this level all the way up to $14,000, a major rally would be imminent.
In case of a pullback, $10,900 is the nearest support, followed by $10,600 and $10,400.