Bitcoin Torn Between Bulls and Bears as Fresh Bearish Pattern Emerges

Bitcoin (BTC) managed to gain some bullish momentum today as it erased all its losses from yesterday’s slump.

Analysts are now suggesting that the benchmark cryptocurrency could see a strong bullish comeback soon thanks to the bounce seen from the $11,130 (yesterday’s low) after it dipped on the back of the Fed-induced volatility.

This is the second time in the past few days that the $11,100 area has triggered strong demand for BTC, which serves as a healthy confirmation that the previous bearish bias might have been weakening.

Analysts are now reconsidering their previous BTC bias as bulls have strongly guarded this level against bears and are predicting an upwards rally is imminent.

Key BTC Levels to Watch

Fed Chair Jerome Powell’s speech at yesterday’s Jackson Hole Symposium caused some serious ‘turbulence’ for Bitcoin. The cryptocurrency reached a high of $11,600, right before slumping to the $11,130 level just a few hours later.

The $11,650 resistance remains the immediate level to beat in the near-term. However, only a break and close above the $11,800 area can fully reinstate Bitcoin’s bullish momentum.

Meanwhile, a new technical pattern paints a grim picture for Bitcoin in the meantime. It appears that a strong downward channel has been formed on the 4-hour chart and Bitcoin appears to be going according to the dictates of this channel. This makes it even more difficult for BTC to regain its bullishness.

Total market capital: $361.6 billion

Bitcoin market capital: $212 billion

Bitcoin dominance: 58.7%

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