If Bitcoin Consolidates Around $12,000, Expect a “Much Bigger” Rally: CEO

It's not been the best time for Bitcoin bulls in the past few hours. The leading cryptocurrency saw a drop in price of $ 1,500 and liquidated long positions worth hundreds of millions within five minutes as buyers were overwhelmed.

Bitcoin has since risen again to $ 11,300, but the rejection at $ 12,000 is still clear.

For BTC to continue growing, an industry manager believes that BTC must recapture and hold the $ 12,000 region. He made the same comment in May 2019 before BTC also consolidated below $ 12,000 before exploding to $ 14,000.

Related reading: Crypto Tidbits: Ethereum up 20%, US banks can hold BTC, DeFi still in Vogue

Bitcoin needs to recapture and hold $ 12,000

Vinny Lingham, managing director of cryptocurrency startup Civic, said $ 12,000 is crucial for Bitcoin. Before the dump, the industry manager argued that Bitcoin needs to consolidate around $ 12,000 to confirm the ongoing upward trend:

"It was a good call last time. This time, Bitcoin is likely to hold $ 12,000 and consolidate at that level as capital flows in old coins to test these waters. If $ 12,000 is valid for 3-5 days, we can assume that the next phase will be a build for a much larger run … "

In context, $ 12,000 was of macroeconomic importance for Bitcoin.

Below is a graph of BTC's price history over the past three years since mid-2017. As can be seen, several candles ricocheted off and were refused almost exactly at $ 12,000, indicating that it is a level that traders consider technically significant.

Chart of BTC's price action over the past three years with a white line at $12,000 from TradingView.com

Bitcoin exceeds this level and then confirms it as support to improve the bull fall, as Lingham explains.

Related topics: Coinbase focuses on DeFi to list 19 new crypto assets

Bulls under control

Although Bitcoin faced the evil rejection of just over $ 12,000 a few hours ago, most analysts believe the bulls are still in control.

A trader said the upward trend is intact as long as BTC holds $ 10,500 in a weekly time frame. This optimistic joke was made about the importance of $ 10,500. Bitcoin was rejected at this price level in three different rallies: one in October 2019, one in February 2020 and one only a few weeks ago in June.

The fundamental data is said to confirm the assessment that the technical upward trend is valid. As reported by NewsBTC, macro investor Dan Tapiero believes that Bitcoin and gold will soon experience strong “upward moves” due to trends such as low interest rates and an extremely weak US dollar.

Related Reading: The unexpected factor that suppressed the BTC bulls in 2019 is now over
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
If BTC Consolidates Around $12,000, Expect a "Much Bigger" Rally: CEO

Source link

Be the first to comment

Leave a Reply

Your email address will not be published.