Bitcoin price prediction – BTC/USD touches $11,500 as bulls stare at $12,000 cliff next

The weekend belonged to the bulls as they not only pushed the Bitcoin price above $11,000 but also  sustained it above this crucial resistance. The price has now clearly recovered from its October lows. The past four weeks saw muted price action as the bulls prevented any further slide in BTC/USD pair and undertook accumulation that ultimately helped break the $11,000 resistance.

Currently, the price hovers around the $11,350 mark after touching a high of $11,496 over the weekend. The relentless buying action is fuelled by both short-term traders and institutional players. Bitcoin price has jumped 6.5 percent in the past week, with most hot activity occurring in the past four days alone. On the hourly Bitcoin price prediction, bulls have the upper hand due to high liquidity and optimistic technical indicators.

The crypto king, Bitcoin, has again shown its resilience and surprised the traders pleasantly by sustaining above the $10,500 support despite multiple crypto-negative news. Many Bitcoin price prediction analysts predicted a deeper pullback towards $9,000 due to the confluence of negative economic news. But Bitcoin price jumped past $11,000 and now settles around $11,350 level.

Bitcoin price movement in the last 4 hours – Pleasantly surprising bullish wave

Bitcoin price hovers around $11,350 level after a feverish march that saw the pair touch $11,496. Small-scale profit booking on the hourly charts dented further upside as scalpers decided to secure their daily profits. Small positive hourly candles and massive green candles paint a highly positive technical picture for the pair.

The earlier resistance at $11,000 now serves as a healthy support level on the hourly timeframe. There is proven $10,500 support that has held the pair against an onslaught of negative news in the past 2-3 weeks. The price has been rejected from the $11,500 level as crucial resistance lies further above at $11,800. Bulls need breathing space at this point and must sustain above the $11,200 mark to build the next bull wave.

There are a strong whale and institutional cluster around $10,500 that prevents a deeper correction. It is key to creating bullish momentum on the weekly charts. Significant clusters of BTC whales have parked themselves near $10,400 to $10,580 price range. Institutional players and whales are known to accumulate and trade in longer time frames, which means there’s strong support available on tap for BTC/USD pair.

BTC/USD 4-hour chart – Next week promises exciting trading

The 4-hour chart is loaded with bullish candles. The thin weekend liquidity can play spoilsport if the price decides to test the $11,000 support level. The four-week-long compression means that bulls have ample liquidity to tide past any untoward movement.

A breakout above $11,500 can see the price touch $12,500 levels, which had been a significant hurdle in the recent past. RSI and MACD are shaping up nicely with bullish readings. The confluence of favorable technical factors, robust fundamentals, and rising institutional interest will eventually favor the bulls.

Why BTC recovered and where is it headed

Bitcoin price recovery has been swift in the past 4-5 days. The decline in the US dollar has had a positive effect on Gold and Bitcoin prices. Then, Square bought $50 million worth of cryptocurrency, and the crypto community applauded. Bitcoin price prediction rests on the good technical structure due to accumulation around $10,500 level that has also contributed to Bitcoin’s recent rise.

The nervousness surrounding the DeFi market has also contributed to the rise in BTC/USD pairs. As decentralized tokens started plunging, investors took shelter in BTC to stem over short term volatility.

As noticed in earlier Bitcoin price prediction, there was a decent undercurrent building up in the past four weeks that supported the current rally. The majority of traders are either bullish or neutral, which means there’s less negativity in the market. That’s mostly due to the fantastic support provided by the $10,500 level.

Michael van de Poppe, as a well-known trader, says that further action in BTC/USD price depends on how the pair handles $11,000 resistance. But his Bitcoin price prediction does acknowledge that chances of volatility remain high. Smart money and institutional investments have just begun, and the environment is highly bullish, he says.

Bitcoin price prediction – Conclusion

So, we’re finally confidently above $11,000. What next? On the daily front, traders would undoubtedly like to have a go at $13,000 before the US Presidential race heats up and volatility kicks in. The prolonged rally would likely touch $12,500 before bulls show signs of exhaustion and Bitcoin price prediction turns bearish. A massive macro rally can only materialize if BTC/USD breaks above $13,000 resistance.

Whether Bitcoin’s price can eventually reach $13,000 is pure speculation? The macro factors, including hash rate, geopolitical news, and institutional investments, have a positive bias to support a long-term bullish rally. Crypto enthusiasts have reacted positively to BTC purchase by both MicroStrategy and Square. The fourth quarter of 2020 has begun positively as all the technical and fundamental indicators point towards a healthy uptrend in the coming days.

Disclaimer – The information provided is not a trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.