Bitcoin is currently showing some notable signs of strength after the bout of weakness over the past few weeks.
The cryptocurrency far outperforms the altcoin market as both large and smaller altcoins such as Ethereum and Chainlink have shown signs of immense weakness in the past few days and weeks.
BTC's rebound in a turbulent and bloody market is the ultimate sign of strength, indicating that in times of uncertainty in the emerging market, investors still view it as the most reliable and secure digital asset.
An analyst noted that this latest rebound came shortly after an incredibly strong daily close released by Crypto yesterday.
He notes that the bearish momentum that had previously dragged it down has stalled and the benchmark's cryptocurrency is now testing a segment of an earlier head and shoulders pattern.
Whether or not Bitcoin is able to break above $ 11,000 should provide important insights into its near-term prospects.
Bitcoin bucks market-wide turbulence and rises
At the time of writing, Bitcoin is trading a little over 1% from its current price of $ 10,930. This is a notable rebound from recent lows of $ 9,900, which were set just last week.
It's important to note that these lows have been tested multiple times, leading many analysts and investors to believe that a break below them is imminent.
That being said, the cryptocurrency has since seen a strong surge of $ 1,000 from those lows, indicating that bulls are unwilling to give up control of their short-term trend.
It now appears that the next cryptocurrency trends may, to some extent, depend on the sustained reaction at $ 11,000 where there happens to be strong resistance.
A strong and crucial break above the lower $ 11,000 region would greatly improve the asset's near-term outlook.
BTC's latest end of the day beats the momentum of the bears
While we are talking about Bitcoin's near-term prospects, an analyst was watching that the daily closing price above $ 10,500 has clouded the water in relation to the short-term trend of the crypto.
In order to gain full control of the cops, it is imperative that they break the neckline of the previous head and shoulders pattern – which is $ 11,000.
“Bitcoin – every day close to the most critical support area of 10.5 km, the water is really cloudy. The bears' momentum is now definitely slowing, leaving mostly an intersection of 10.5 km to the previous HnS cut of 11,000, ”he explained.
Featured image from Cheds. Chart via TradingView.
How bitcoin trends should provide insights into the medium-term prospects of the aggregated crypto market in the coming days.
Featured image from Unsplash. Charts from TradingView.