- Bitcoin’s price appears to have entered yet another consolidation phase as it trades between $11,400 and $11,600
- Its present lack of momentum comes close on the heels of the strong move higher that it posted last week
- The resistance above its current price level is quite intense, and this may mark an attempt from bulls to garner greater buy-side support
- Where the market trends in the mid-term will likely depend largely on whether Bitcoin’s consolidation phase results in a breakout or a breakdown
- One analyst believes that Bitcoin will move like a “bulldozer” once it can determine which direction it wants to trend next
Bitcoin and the entire cryptocurrency market have lacked momentum throughout the past few days.
This consolidation has come about closely following the series of strong upwards movements seen just a few days ago that helped end its previous consolidation phase and push it past the resistance it faced between $11,000 and $11,200.
One analyst does believe that the next big movement that BTC makes will provide it with lasting directionality.
He even notes that the benchmark cryptocurrency will move like a “bulldozer” once this next trend-defining move is made.
Bitcoin Consolidates Around $11,400 as Buyers and Sellers Reach an Impasse
At the time of writing, Bitcoin is trading down marginally at its current price of $11,410. This is around where it has been trading throughout the past few days.
Its inability to garner any momentum has come due to the intense selling pressure that sits around $11,600.
Each attempt to move past this level has resulted in strong rejections, which indicates that a break above this level would hold some serious technical significance.
The lower-$11,000 region does seem to hold some support for Bitcoin, and it will require some serious selling pressure for it to be broken below.
Analyst: BTC Likely to See a “Bulldozer” Move Once It Gains Momentum
He pointed to the ongoing volume compression seen by the crypto, noting that it indicates a massive move is on the horizon.
“BTC: 2nd major volume compression underway this year… Watch out for the bulldozer when this baby picks a direction,” he said.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
The coming few days and weeks should offer analysts and investors insights into Bitcoin’s near-term outlook.
Featured image from Unsplash. Charts from TradingView.