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Taking Out $12K Leaves “Clear Skies” For Bitcoin To Set New 2020 High

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Bitcoin price is currently down nearly $400 from yesterday’s highs in a flash, after coming close once again to the $12,000 resistance level. According to a crypto analyst referencing on-chain analytics, once $12,000 is broken through cleanly by bulls, there’s “clear skies” above that until $16,500 – which they claim is just a minor “speed bump.”

Technical analysis also demonstrates just how critical $12,000 has been to Bitcoin and its ongoing bear market, and why it may remain the key to fully unlocking the power of the next bull run.

On-Chain Volume Analysis Shows “Clear Skies” For Bitcoin Above $12,000

At this point, $10,000 feels like an afterthought, and now the leading cryptocurrency by market cap faces $12,000 as the de facto resistance level to break.

$12,400 is the current 2020 high, but after Bitcoin has now spent its longest stretch above $10,000 in its history, and fundamental health improves by the day, it is only a matter of time until $12,000 is taken out as well.

Bitcoin On-Chain Analysis Shows $12,000 Significance | Source: Byzantine General Via Twitter

When that happens, according to a top crypto analyst sharing an on-chain volume profile analysis, it is “clear skies” for Bitcoin. Aside from a small “speed bump” at $16,500, new all-time highs and a return to price discovery could be next.

RELATED READING | HOLD OR HOARD: DATA SHOWS STAGGERING AMOUNT OF BITCOIN SUPPLY HASN’T MOVED IN SEVERAL YEARS

But it all depends on this key level, which is clearly the most dominant level left on the on-chain volume analysis profile shared by the analyst. The current cluster is what is keeping Bitcoin trading sideways, and the only other comparable volume clusters lie below at $3,200 or lower.

Technicals Highlight How Critical $12K Is To The Cryptocurrency’s Bull Breakout

$12,000 is also the technical level to beat, matching the on-chain volume profile analysis above. Bitcoin only traded two weeks of 2018 above $12,000, then has never closed a weekly candle above that level, not even in 2020.

bitcoin btcusd 12000

BTCUSD Weekly $12,000 Resistance Level Technical Analysis | Source: TradingView

When that does happen, the next logical target is a retest of the 2019 high at $13,800, and beyond that, is the “speed bump” on-chain analysis shows that could cause a short-lived pause in any uptrend.

RELATED READING | THIS UNUSUAL BITCOIN ADOPTION METRIC SETS NEW ATH

$12,000 is the line separating Bitcoin from a bear or bull market. Beyond that level, however, as the trader says, its clear skies for the crypto asset, and likely new all-time highs set each new passing month until the next peak is in.

Featured image from Deposit Photos, Charts from TradingView





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Bitcoin

Bitcoin price bounces to $33K but analysts say ‘it’s too early’ to call a bottom

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Cryptocurrency investors found little reprieve on June 22 as the price of Bitcoin (BTC) fell below $30,000 for the first time since January, sparking panic among less experienced market participants who have yet to experience a full market cycle. 

While Bitcoin has been under increasing pressure from multiple sources since early May, the most recent bout of selling has been largely attributed to capitulation by China-based miners who have been forced to abruptly shut down their operations.

Data from Cointelegraph Markets Pro and TradingView shows that after dropping to $28,800, Bitcoin price bounced back above the $30,000 level and currently trades for $32,600.

BTC/USDT 4-hour chart. Source: TradingView

The strong bounce came after comments from Brian Nelson, the current nominee for Under Secretary of the Department of the Treasury’s division on terrorism and financial crimes. Nelson said he was going to make the implementation of new regulations around cryptocurrency a priority if he is confirmed.

Miner crackdown in China sparks market turmoil

The pressures put on Bitcoin and the overall cryptocurrency market was highlighted by Élie Le Rest, partner at digital asset management firm ExoAlpha. Le Rest told Cointelegraph that “Chinese market participants have been massively selling during the past month.”

Le Rest also pointed to the “Grayscale unlocking schedule leading to more selling pressure,” resulting in some panic selling by the less experienced traders in the market.

Le Rest said,

“With newcomers in the crypto market seeing their profit and capital getting wipe out by selling waves, newcomers are taking their loss as they can’t stomach this much negative volatility anymore.”

Due to these pressures, Le Rest believes that the market could range in the “lower tranches of $25,000 to $35,000” in July, with the low volume usually seen in August having the potential to “accelerate this downside trend or build the upside trend.”

The upside case for today’s move was provided by David Lifchitz, managing partner and chief investment officer of ExoAlpha, who stated that the activity seen in the market on June 22 “seems to have drawn the line in the sand for BTC at $29,000 and Ether (ETH) at $1,700, given the swift bounce.”

Related: Bad call? Bitfinex bears closed a block of Bitcoin shorts before the drop below $32K

That being said, Lifchitz warns against throwing caution to the wind as the volatile nature of the crypto market makes picking a bottom notoriously challenging.

Lifchitz said:

“However, it’s too early to tell if this is “the” bottom or just a temporary floor before more downside. The lack of any upside catalyst (besides some contrarian oversold metrics) remains the biggest hurdle for cryptos to bounce back… Paging Mr.Musk, paging Mr.Musk.”

Altcoins see double-digit losses

The altcoin market followed Bitcoin’s lead on June 22 with a majority of tokens seeing double-digit losses as traders ran for the safety of stablecoins.

Daily cryptocurrency market performance. Source: Coin360

The price of Ether managed to rebound along with the price of BTC, helping erase a 15% correction and send the price back above $1,900.

Two tokens that managed to rise above the market turmoil and see positive gains for the day were Livepeer (LPT), which posted a 15% gain and Celo (CELO), which saw its price increase by 9%.

The overall cryptocurrency market cap now stands at $1.303 trillion and Bitcoin’s dominance rate is 47.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.