Bitcoin had a major macro candle close yesterday, posting both its monthly and quarterly candle.
Although BTC saw little volatility heading into this close, the cryptocurrency was able to hold well-above $10,500 before and after it took place, which provided bulls with a serious boost.
Overnight, the strength resulting from this close allowed Bitcoin to push up towards $11,000, reaching as high as $10,920 before its ascent slowed.
Although BTC has yet to see any strong push higher, its short-term outlook still remains fairly strong. Where it trends next may depend primarily on whether or not bulls are able to break through the resistance between $11,000 and $11,200.
The selling pressure here is rather significant and may hamper its growth in the days and weeks ahead.
That being said, one trader did note that the bull case for the benchmark cryptocurrency was boosted by the recent candle close and may indicate that the chances of it seeing upside are beginning to grow.
Bitcoin Struggles to Rally Despite Bullish Monthly Candle Close
At the time of writing, Bitcoin is trading up just under 1% at its current price of $10,870. This marks a break above the trading range it had formed between $10,600 and $10,800, but buyers have been struggling to break above $10,900.
Because of the lack of strength and conviction seen throughout this latest push higher, bears may be able to regain control over BTC and push it lower in the near-term.
That being said, the crypto’s mid-term outlook was boosted by yesterday’s monthly and quarterly candle close.
Unless bears push BTC below its $10,200 support, its mid-term outlook remains incredibly bright.
Trader: It’s Growing Hard to Be Bearish on BTC Following Recent Candle Closes
While sharing his thoughts on Bitcoin’s mid-term outlook, one trader explained that it is growing increasingly difficult for bears to justify their positioning given the latest monthly candle close.
He notes that a serious block of support stands in the way of it seeing any type of move that invalidates its mid-term strength.
“BTC monthly: If you’re a believing man, this is a bullish retest and any dips towards $10.1k are for buying. If you’re a doubter, it’s really hard to be bearish as long as that block stands in the way so might be time to be patient to see where this month goes.”
Image Courtesy of DontAlt. Chart via TradingView.
How the entire crypto market trends throughout the fourth quarter will depend on Bitcoin.
Featured image from Unsplash. Charts from TradingView.
Cole Petersen , 2020-10-01 18:00:41