- Bitcoin has consolidated around $10,700 over the past number of days after hitting $10,200 early this week.
- The coin just surged higher in tandem with a positive open in legacy markets.
- The price of BTC is now $10,900, the highest price in around a week for the leading cryptocurrency.
- Analysts think thatÂ BitcoinÂ may have room to extend to the upside as it recaptures resistances in the high-$10,000s.
- During the move higher, millions were liquidated across margin platforms.
- This suggests that there were some traders positioned short prior to the open of legacy markets.
BITCOIN HAS ROOM TO MOVE TO THE UPSIDE
Analysts think that Bitcoin will extend higher in the near term.
One analyst justÂ sharedÂ the chart below, showing the importance of the ongoing move higher. Bitcoin breaking higher now, the chart suggests, will mean that it will soon move to test the resistance at $11,200-11,400, where the cryptocurrency bottomed many times during bearish retracements in August.
The chart does note, though, that after a rally towards that level, it could return to around $10,600. This is in line with a sentiment shared by other analysts that Bitcoin is likely in the period of its market cycle where it will consolidate for weeks on end instead of establishing a firm direction.
Unfortunately, Bitcoinâ€™s medium-term prospects may be bleak.
Josh Olszewicz, an analyst at Brave New Coin, justÂ reportedÂ that Bitcoinâ€™s one-week MACD has opened red for the first time since April. This suggests that the prevailing medium-term trend may be bearish despite recent price action to the upside.
A correction in the medium term would align with the normal uncertainty that markets see around the time of presidential elections, along with the seasonal weakness often seen in October and November.