- Bitcoin and the entire crypto market aren’t providing investors with much clarity into their near-term outlooks
- BTC is in the process of battling the headwinds created by the ongoing turbulence within the stock market
- This turbulence has come about as a result of a lack of progress surrounding the second stimulus package
- If the White House and Congress fail to come to terms with an agreement, then the stock market may continue seeing immense selling pressure that impacts Bitcoin
- One analyst is still confident that upside may be imminent for BTC
- He is pointing to the strong support just below where it is currently trading, noting that a move higher could be imminent
From a fundamental perspective, Bitcoin has been growing by leaps and bounds, with virtually all on-chain metrics showing signs of subtle bullishness, while companies also begin accumulating BTC.
This strength helped break its previous consolidation phase within the mid-$10,000 region but has not been enough to send it past any of the key resistance levels that sit throughout the mid and upper $11,000 region.
Despite its stalling momentum, one analyst points to the robust support levels that sit just below where BTC is currently trading at. He notes that a move to $12,000 may still be imminent.
Bitcoin Struggles to Gain Momentum as Stock Market Creates a Headwind
At the time of writing, Bitcoin is trading down marginally at its current price of $11,390. This is around where it has been trading throughout the past few days.
Its stalling momentum comes as the stock market faces some heightened selling pressure due to the lack of progress on any phase 2 stimulus bill.
It still is trading well above its key support around $11,300, which has continued holding strong throughout the past few days despite several bouts of intense selling pressure.
Analyst: BTC Likely to Take Aim at $12,000 in the Near-Term
While sharing his thoughts on where Bitcoin might trend next, one analyst noted that he still thinks a move to $12,000 could be imminent, despite the choppy price action seen as of late.
He offered this target in the below chart, noting that a move here may spark a slight correction followed by yet another bout of sideways trading.
“I could get behind offering these levels passively. Not something I normally like to do, but I think if we drive up again that we end up just correcting to a degree and chopping after anyway. The longer-term play is still intact.”
Image Courtesy of Cantering Clark. Source: BTCUSD on TradingView.
How the stock market trends this week will undoubtedly influence Bitcoin, but its fundamental strength may allow it to dodge most of this turbulence and push higher.
Featured image from Unsplash. Charts from TradingView.
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