Why Bitcoin Price Holding Above $11,850 Is Pivotal For the Bull Case - OhNo "WTF" Crypto

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Why Bitcoin Price Holding Above $11,850 Is Pivotal For the Bull Case

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Bitcoin has begun to move higher after a crushing correction towards the end of last week. As of this article’s writing, the leading cryptocurrency trades for $11,750, around 3% higher than last week’s lows and around 5.5% below last week’s highs.

According to most analysts, Bitcoin is in no man’s land. It is safely trading above the $11,500 weekly support but remains below the $12,000 resistance.

But a new on-chain analysis by a cryptocurrency data site suggests Bitcoin is on the verge of flipping a pivotal level into support. BTC doing so could set the stage for upside, upside that will take the asset back above $12,000.

Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, Ethereum DeFi Boom, BitMEX KYC

Bitcoin Must Move Above $11,850: Analysis

Bitcoin is not yet in the clear despite bouncing 3% from the $11,380 lows of late last week.

According to data shared by WhaleMap, a cryptocurrency data site tracking on-chain trends, $11,850 is a crucial supply zone for Bitcoin. $11,850 is a level at which many cryptocurrency whales acquired BTC in the past, suggesting it is an on-chain resistance.

Speaking about the importance of $11,850 to Bitcoin’s price trajectory in the near term, WhaleMap wrote:

“Hourly whale bubbles (still in dev mode) show few more resistances we need to consolidate above. Most major one is at ~$11850. If we clear that – we are above a strong supply zone. Overall, I feel we need to consolidate above ~$11,850 for price to make the second leg on the daily and on-chain shows that it’s somewhat likely due to HODLer profit taking being bought up.”

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Chart of BTC's price action with unspent Bitcoin analysis by crypto data site Whalemap.io (@Whale_map on Twitter)
Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop

Who Is Driving the BTC Price, Bull or Bears?

With analysts eyeing $11,850, it’s worth asking which subset of investors is driving Bitcoin, bulls or bears.

According to analysts, with BTC bouncing strongly at the $11,400 level, it seems as though bulls are in control. One trader explained that from how he sees it, $11,400 is where a confluence of three technical levels meet, making Bitcoin’s bounce extremely significant.

“Opened up a completely fresh chart for $BTC and to be honest, looks kinda good on the daily. Could be worse tbh. Below 11380 it’ll look like trash though.”

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Chart of BTC's price action over the past year with an analysis by crypto trader Smokey (@TraderSmokey on Twitter). Chart from TradingView.com

This underlying technical strength suggests Bitcoin will soon move above $11,850, which could trigger an even greater move higher.

Related Reading: Crypto Tidbits: Dave Portnoy Drops Bitcoin, Tether Supports Ethereum’s OMG Network, DeFi Still Hot
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Why Bitcoin Price Holding Above $11,850 Is Pivotal For the Bull Case


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Nick Chong, Khareem Sudlow