Bitcoin is again trading in the top $ 11,000 region. Here the price has found immense stability in the last few weeks.
The sideways trading of the cryptocurrency has caused it to hover between $ 11,200 and $ 12,000. These two levels mark the upper and lower boundaries of a trading area that has been formed in the past two weeks.
Some analysts point to recent events such as a sharp drop in BTC balances on the exchange and Dave Portnoy's entry into the crypto industry as factors that could stimulate the market in the short term.
Despite these events, which are certainly a good sign for Bitcoin, the technical strength of the cryptocurrency alone may be enough to fly it past its $ 12,000 resistance.
A top trader who was previously bearish on BTC now notes that opening directional short positions within their current trading range is "pure gamble".
He believes the risk of positions being liquidated in a sharp upward move is too high to warrant that Bitcoin is running out.
Bitcoin rises to $ 12,000 as Ethereum offers tailwind
Bitcoin and the aggregate cryptocurrency market have seen mixed trading lately, with certain altcoins seeing explosive rallies while others trending lower.
Yesterday, Ethereum's price saw a sharp spike, taking it from $ 390 to highs of $ 435. At this point, crypto lost its momentum and began to consolidate just below these highs.
In the past few weeks, ETH has been bringing the gains posted by BTC to the fore, meaning the benchmark cryptocurrency could soon see a breakout rally as well.
At the time of writing, Bitcoin is trading marginally at its current price of $ 11,700. Trading has taken place here in the last few weeks.
While it doesn't yet reflect ETH's price action, its fundamental strength, coupled with a potential flood of new investors as the price picks up pace, could help boost ETH.
Top Trader: Shorting BTC Here's "Pure Gambling"
A top trader who talks about the current technical strength of the cryptocurrency explained that the risk of shortening Bitcoin's trading margin is "pure gamble" and risky unless it is done for the purpose of hedging other positions.
“Directional shorts in this area are just pure luck. I especially understand hedging if you know your way around illiquid DeFi stuff but the risk of being short is still too high unless certain market factors change. BTC still in the 12.2-11.2,000 range. "
Image Courtesy of Flood. Chart via TradingView.
Given the strength of the uptrends in Ethereum and other altcoins, a massive influx of selling pressure would be required to force Bitcoin below the lower limit of its trading range.
As such, it may only be a matter of time before there are other benefits.
Featured image from Unsplash. Charts and pricing data from TradingView.