Bitcoin price prediction: BTC remains supported for more gains towards $11,700

Bitcoin price is trading in a bullish market at the moment beyond the support zone after making consistent gains after Jack Dorsey’s square announced the allotment of 1 percent of its cash reserves into BTC. The largest cryptocurrency is well supported for further upsurge towards the $11,500 and $11,700 price levels. 

Bitcoin price daily recap 

The bitcoin price action started the day trading at $11431.6 after closing the previous day at $11425.4. So far, the BTC/USD pair has traded within a price range of $11375.9 — $11470.0, and it is currently trading at $11393.7. 

BTC/USD 4-hour chart

The bitcoin price action has remained positive for the last few days trading beyond the $11,000 support. The top cryptocurrency has managed to clear the selling pressure near $11,240 and the 55-SMA.

Bitcoin’s price rally gained pace after moving above the $11,500 price level to hit a fresh monthly high of $11,737 before beginning a correction. Bitcoin price action managed to dip below $11,600 and $11,580 support levels.

At the moment, bitcoin price action is trading beyond the $11,320 anchor zone with the immediate support near $11,240. 

Bitcoin price prediction

The sustained move above the $11,000 price level has enhanced bitcoin’s point of view and gave traders hope that it is prepared to achieve its bullishness. More than 1.5 million bitcoin addresses containing more than $1 million in BTC provide a defensive wall against a breakdown below the robust $11,000 support.

There is a crucial ascending trendline shaping up anchored near $11,320 support. If the bulls can sustain the bullishness, bitcoin price could continue rising above the $11,450 support towards $11,500. The next critical selling pressure is located near the $11,700 price level. Further resistance lies beyond $12,000 and $12,200 if the buyers can carry on with the momentum. 

On the contrary, the cryptocurrency is currently supported by the $11,320 price level. If the bears hold off the bulls, further support is provided by the $11,240 price level. Breaching the critical support might lead to a sharp decline, which would be disastrous for the buyers. 

The good thing is that there are more than 1 million addresses with over 600,000 BTC located near the $11,500 price level. Furthermore, above this level, there is minimal selling pressure. 

Furthermore, the weakening U.S. dollar implies that the top cryptocurrency is poised for further gains. People are losing confidence in the world’s reserve currency due to the unfavorable monetary policy and the U.S. central bank printing more dollars to alleviate the economic crisis created by the coronavirus pandemic.

The vast depreciation of the U.S. dollar happens when the risk of inflation is at its peak. This brings BTC into the spotlight as the safe-haven asset, the same as gold. However, bitcoin’s decentralized nature protects it from being manipulated and exploited.