Bitcoin Must Now Beat $11.2K for Bull Revival, Say Analysts

Oct 9, 2020 at 13:06 UTCUpdated Oct 9, 2020 at 14:26 UTC.Despite bitcoin's rally to three-week highs, some analysts remain cautious and want to see the cryptocurrency topple key resistance at $11,200 before calling a bullish revival.

The biggest cryptocurrency by market value has risen by 3.5% to levels above $11,000 in the past 24 hours, confirming an upside break of a narrowing price range represented by trendlines connecting Sept. 19 and Oct. 1 highs and Sept. 8 and Sept. 23 lows.

Bitcoin is currently trading near $11,050 - up 6% from lows below $10,400 seen earlier this month and the highest level since Sept. 20, according to CoinDesk's Bitcoin Price Index.

While the recovery and the range breakout looks impressive, chart analysts and traders say $11,200 is now the level to beat for the bulls.

"We consider the breakout of the Sept. 19 high of $11,200 to be a more significant catalyst for further upside," Lennard Neo, head of research at Stack Funds, told CoinDesk.

He added the price range of $10,000 to $11,200 may hold until more clarity surfaces going into November U.S. elections.

Bitcoin's rejection near $11,200 on Sept. 19 was followed by a four-day sell-off to $10,200.

A break above $11,200 would be more credible evidence of a bullish breakout, as pointed out by Neo.Meanwhile, Simon Peters, a crypto market analyst at investment platform eToro, said bitcoin needs to hold or establish a new base above $11,000, in which case it could make a move toward the next psychological hurdle at $12,000.

That's because bitcoin failed multiple times in mid-September to absorb selling pressure above $11.000.And while Neo and Peters remain cautious, Phillip Gillespie, CEO of the over-the-counter liquidity provider B2C2 Japan is foreseeing a pick up in volatility in the near term, as U.S. elections, a large systematic risk even, are scheduled for Nov. 4."If we weren't weeks away from the U.S. election, I would think we have a bullish setup in bitcoin," Gillespie said while sharing his view on Thursday's triangle breakout.

Disclosure: The author holds small positions in bitcoin and litecoin.