Bitcoin is now flashing some immense signs of strength as its price pushes up towards its yearly highs of $11,400. This comes as Ethereum, and many other major altcoins, also build technical strength.
This ongoing uptrend is being driven by massive inflows of buying pressure that are helping to degrade the resistance established throughout the mid-$11,000 region.
Analysts believe that this could mark the start of the next leg up, which could send BTC to $12,000 or beyond.
This potential leg higher could devastate altcoins, according to one respected fund manager, who claims that a move towards $12,000 could be imminent if BTC breaks above $11,400.
Because Ethereum has been providing Bitcoin with some guidance in recent weeks, ETH may be immune from any type of BTC-induced downtrend.
Bitcoin Flashes Signs of Strength as Analysts Watch for a Move to $12,000
At the time of writing, Bitcoin is trading up over 2% at its current price of $11,350. This marks a notable surge from daily lows of $10,800 that were set yesterday evening when bears attempted to invalidate BTC’s uptrend.
The strong support that bulls were able to build around these lows helped to absorb the selling pressure and subsequently allowed the crypto to rally higher.
It is now pushing up against its key resistance within the mid-$11,000 region, which may be difficult for buyers to surmount in the near-term.
One factor to consider that could have implications for Bitcoin is the massive influx of buy orders that have been backing this latest push higher.
While speaking about this, one analyst offered a chart showing that BTC is breaking out of a bull flag.
“Bitcoin 4 hour – Flirting with a new leg up,” he explained in a recent tweet.
Image Courtesy of Big Cheds. Chart via TradingView.
If this resistance is shattered, BTC will likely break into the lower-$12,000 region before facing another influx of selling pressure that slows its ascent.
BTC’s Next Rally Could Crush Altcoins – Claims Fund Manager
He reckons that this will likely send the benchmark digital asset towards $12,000, with this next leg up delivering a major blow to altcoins.
“If BTC breaks the resistance at $11.4K, we are going above $12K in no time. Will take the wind out of alts again short term.”
How the cryptocurrency trades in the coming hours as its monthly candle close approaches should provide valuable insight into where it will trend in the coming weeks.
Featured image from Unsplash. Charts from TradingView.