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.
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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 … "
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 … https://t.co/wQDUnp4rAZ
– Vinny Lingham (@VinnyLingham) August 2, 2020
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.
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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.
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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