Bitcoin’s (BTC) rally has gained fresh momentum as the price of the asset finally broke past the crucial 11,800 resistance to overcome the $12,000 barrier for the second time this month. The move followed an altcoin rally that saw altcoins like LINK and BAND post massive gains in a day.
As previously reported by The Daily Chain, BTC had formed a symmetrical triangle on the 4-hour chart and a bullish breakout above the $11,800 resistance level was expected by traders.
Rakesh Upadhyay, a crypto analyst, noted earlier:
“The BTC/USD pair has formed a pennant, which usually acts as a continuation pattern. A breakout and close (UTC time) above the pennant will be the first sign that bulls have gained the upper hand.”
Bitcoin’s weekly close above the $11,500 level, which formerly acted as macro resistance in 2019, flipped to be macro support for the asset, further adding to the bullish sentiment.
The price of the asset surged as high as $12,046 but the bulls failed to provide enough volume to push to a new daily high above the August 2 high at $12,122.
The current rally is being led by the Bitcoin spot markets that are not incurring a large discount to futures markets, which often lead when BTC rallies.
Only $7 million worth of shorts were liquidated this time, which is quite low compared to previous liquidation sprees, hinting that selling pressure is low.
For now, the $12,000 psychological level is also a crucial resistance point before the next resistance at $12,350. A break above this point with sufficient volume is the only scenario following which the rally would continue.
Full-time trader Adam Mancini previously highlighted that BTC/USD was forming a “multi-year bullish triangle”. After the current rally, the trader states that BTC/USD closed above the pattern by almost $2000.
Mancini now expects BTC price action to be heading towards $15,000, stating:
“Bitcoin may be the new kid on the block but the same old classic patterns that apply to all financial assets still apply. Trend is up with 15k next target”
Another crypto trader going by the name of Larousse believes that the sight retracement from $12,000 is another chance for traders to buy in before the next rally.
Meanwhile, crypto analyst RoookieXBT expressed bullish sentiments stating that any price action below $20,000, is just meant to shake out traders before the asset hits $100,000.
A similar opinion was also voiced by popular crypto trader Josh Rager who highlighted that this was the “Highest price weekly close for Bitcoin since January 2018”.
“A higher-high on the weekly trend – nice close by Bitcoin even after the $12,100 to $10,500 pullback. I will remain bullish with the trend even though pullbacks are expected,” he said.
With the current rally, Bitcoin has also regained some of its dominance over the market which currently stands at 59.51%.
The rally also followed a drop in Chinese stocks as all eyes were on the latest US sanctions targeting China, including a punitive action on Carrie Lam, Hong Kong’s leader. China’s CSI 300 fell 0.8 percent while Hong Kong’s Hang Seng plunged by 1 percent.
Historically, political tensions at a global level have often contributed to the rise of the safe-haven assets which include BTC, as well as Gold.
At press time, Bitcoin is price stands at $11,960 with the token up 2.2% on the daily.