The Bitcoin (BTC) price rejected the USD 12,000 resistance level for the second time in the last 10 days. Traders are generally optimistic about the short term trend of BTC, after its extended consolidation below a critical resistance level.
When an asset is relatively stable near a major resistance area, it usually suggests that a continuation of the upward movement is likely. It shows that sellers do not have enough pressure to push BTC to a fundamental price point. Many traders apparently anticipate that the Bitcoin price will remain in the range of USD 10,500 to USD 12,000. If BTC does not fall below a key support level at USD 10,500, technical analysts say that the structure of the bullish market will remain intact.
The confluence of a positive global macro environment and a robust market structure are just some of the encouraging sentiments surrounding Bitcoin, but investors have also expressed concerns about some of the short-term obstacles it faces.
DeFi BAND and LINK tokens outperform Bitcoin’s price performance by gaining 100% in 10 days
A bullish continuation
The main factor behind the predictions of a short-term bullish continuation of Bitcoin is its long-term market structure. Analysts say that high-frequency BTC charts, such as the monthly chart, indicate a clear breakout, with BTC escaping a prolonged price range that often leads to an extended rally, especially if the breakout occurs on a high-frequency chart. Raoul Pal, CEO of Global Macro Investor, said:
„Super early days for what is likely to be a big move, as the institution finally follows what BTC retail investors have known all along: that this is the future and it is well below price.
Since its peak in 2017, when it almost reached the USD 20,000 mark, BTC has oscillated within a multi-year price range, reaching a floor at USD 3,150 in 2018 while seeing a local peak of USD 14,000 in July 2019 and setting a three-year range. But when the price of Bitcoin recently broke above USD 11,500, it confirmed in the weekly and monthly charts that the dreaded range had been broken. Several market data points could also complement Bitcoin’s long-term upward trend.
Kyle Davis, co-founder of Three Arrows Capital, suggested that there is a small gap between $14,000 and $20,000 in the options market. Citing data from the Deribit options exchange, Davis said, „$BTC will fly above $14k to $20k,“ suggesting that a break above $14,000 could drive the next BTC rally.
Some Bitcoin traders also emphasized that the current structure of the Bitcoin market is very optimistic. Scott Melker, a crypto currency trader, said that the absorption of the Bitcoin falls shows that the BTC trend is upward: „It’s the slump buying season and any opportunity to get to a higher minimum is welcome. This is a bullish chart, period.
Bitcoin and Gold prices fall as Trump praises ‚big stock market numbers
On the Bitcoin four-hour price chart published by Melker, Bitcoin registered four higher lows, or four local lows that are higher than the previous lows. A higher low pattern in technical analysis is considered a positive formation because it shows the strength of the buyers. Bitcoin buyers bought every drop in the last 10 days.
The positive technical factors surrounding Bitcoin Trader have been complemented by the promotion of chain data points. According to the chain market data provider IntoTheBlock, the number of Bitcoin ‚HODLers‘ has increased substantially:
„The HODLING trend for #Bitcoin continues. As you can see in the graph below, the number of $BTC hodlers has increased by almost 4 million in the last twelve months. As of August 9, a total of 20.47 million addresses had 11.51 million BTCs for over a year“.