On Tuesday, the bitcoin (BTC) bulls mustered enough strength to push the BTC price just over $ 12,000, a level not seen since September 1.
The move came after high volume continued at $ 11,822 on Monday (October 19), followed by continued purchases on Tuesday, giving the bulls enough momentum to move across the rising channel to $ 12,038.
Bitcoin futures volume via the trading floor. Source: Data on digital assets.
The rise to $ 12,000 was also accompanied by an increase in volumes on the leading bitcoin futures exchanges from Monday to Tuesday, and earlier this week the Cointelegraph reported that the latest CME Trader Commitments report shows that institutional long positions have reached record levels.
Traditional markets took a hit earlier this week as investors feared a stalemate between Democrats and Republican lawmakers in Congress could prevent another round of economic stimulus to ease economic pressure on small businesses and Americans in need. The second stimulus test.
Fortunately, the Dow, S&P 500 and Nasdaq ended the day and closed the day with marginal gains.
It is worth noting that the Dow Jones index opened up 100 points after US House Speaker Nancy Pelosi said she was “optimistic” about the agreement between Congress and the White House.
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Bitcoin’s recent price action has moved somewhat away from the stock market’s momentum, prompting some crypto-Twitter analysts to once again ask for a “conclusion”, but all this seems premature.
Wherever the bitcoin price disconnected from the traditional markets, digital assets will remain one of the best in 2020, as they are currently up 65.4% since the beginning of the year.
Today’s high of $ 12,038 is just $ 10 from the previous high on September 1, when the Bitcoin price formed a pair of tweezers and corrected 18.5% over the next few days. Naturally, traders expressed mixed feelings that the price was hovering around $ 12,000 again, especially since the last 5 visits to this resistance were followed by a strong sale.
When it comes to price action, when an upward channel is a broken trend line near a high resistance level, some profit is normal, and this usually results in a price drop to test either the rising channel’s trend line or previous resistance, such as $ 11,900 to determine. Whether buyers are still optimistic enough to confirm the level of support.
On the 4-hour time frame, we can see that this is exactly what happened when the price fell to $ 11,850 when investors made a profit.
At the time of writing, BTC is trading around $ 11,940, and if there are less than 2 hours left until the end of the day, the goal of locking in $ 12,000 by the end of the day will be a positive sign.
Given the recent importance of the $ 12,000 level, several failed attempts to overcome resistance or an apparent loss of momentum could result in bear traders selling between $ 11,900 and $ 12,000. This will increase the likelihood that your previous 12K sales will be duplicated.
As mentioned in the previous analysis, the bitcoin price has support of 20-MA ($ 11,600) and $ 11,500- $ 11,400. If the price falls below the midline of the rising channel, the supports will also be at $ 11,200 and $ 10,900.
Over the next day or so, some consolidation in the $ 11,950 to $ 11,800 region may lead to a bullish flag or scientific formation, so traders should look at the 4-hour chart and trading volume in 1-4 hours. …
A push to the daily high ($ 12,038) will return the price to a high resistance level (see the dotted blue line), which, if reversed to the support level, will put the bitcoin price back on track to secure a new 2020 high.