Bitcoin’s intense rally seen yesterday evening allowed it to surmount multiple heavy resistance levels that were previously suppressing its price action.
The cryptocurrency has also bolstered its technical outlook, with multiple factors now working firmly in the favor of BTC’s bulls.
One such technical factor would be a bull cross seen while looking at its Ichimoku Cloud, which just formed for the first time seen since the bull market in 2017.
Technical factors like this have led to a sense of euphoria amongst investors, but it is important to keep in mind that Bitcoin has yet to firmly surmount its high time frame resistance at $10,500.
This has been a crucial level for the benchmark digital asset throughout the past year, as it has posted three rejections at this level and has yet to break above it since late-June of 2019.
If buyers do shatter the resistance that exists here, it is likely that significantly further upside is just around the corner.
Bitcoin Rallies Towards Crucial Resistance as Technical Outlook Grows Bright
At the time of writing, Bitcoin is trading up over 4% at its current price of $10,350. This is around the price at which the cryptocurrency has been trading throughout the past several hours.
Despite seeing a strong influx of buying pressure that sent BTC rallying above $10,000 yesterday evening, the crypto has yet to visit its crucial high time frame resistance at $10,500.
Whether or not it is rejected at this level could be one of the sole factors that determine the long-term significance of this latest push higher.
The importance of this level cannot be overstated, and one prominent analyst recently explained that he does believe BTC is ready to break out and rally past this level.
The chart he offers indicates that the next major resistance level sits at roughly $12,000.
“Update from July 21 tweet, BTC has indeed risen up to the top of the range and is looking ready to break out.”
Image Courtesy of Philip Swift. Chart via TradingView.
BTC Just Formed This Technical Pattern for the First Time Since 2017
One technical factor that may be able to lift Bitcoin past the crucial $10,500 resistance level is a recent bullish “TK recross” seen while looking at its Ichimoku Cloud formation.
While speaking about this, one highly respected analyst explained that he hasn’t seen this pattern form since 2017.
“1D BTC: Bullish TK recross above the Cloud. Havent had those on BTC since….2017.”
Image Courtesy of Josh Olszewicz. Chart via TradingView.
Bitcoin’s price action in the next day or two will likely prove to be crucial for determining its long-term outlook.
Featured image from Unsplash. Charts from TradingView.