Bitcoin has surged to $ 11,988 in the past few hours before dropping to $ 11,900. The price is about to surpass $ 12,000 and some analysts have suggested that the dominant cryptocurrency is on the verge of separating from the rest of the market, including US stocks.

Public opinion about Bitcoin (BTC) among analysts and traders remains positive, with several analysts on the chain saying Bitcoin has acted as a safe haven.

Technical analysis suggests that the $ 12,000 resistance level must first face support, and past price action around this level indicates that it will be difficult for BTC to completely surpass it on the first test.

Bitcoin daily chart. Source: TradingView.com
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Is Bitcoin on the cusp of a new bullish trend?
Network analyst Willie Wu is consistently positive about the current Bitcoin price cycle.

Wu stressed that BTC, which shows a correlation with US stocks in the short term, makes sense, but in the long term, the analyst noted that a split is inevitable. He said:

“Shutting us down 🙂 It makes sense that BTC will continue to correlate with trading in the short term, but not longer. BTC is a safe haven, only this “risk” (which means it is very new) distorts this fact. ”
While fundamentals are bullish on Bitcoin, technical analysts and traders are wary of BTC at $ 12,000. Historically, the $ 12,000 level has been a strong area of ​​resistance for BTC.

A trader alias “Salsa Tequila” said he remains wary of bitcoin getting closer to the $ 12,000 level. The merchant wrote:

“About $ 12,000. I am very careful, I think we will refund your money. I would not bet on this level in the first test. ”
In addition to Bitcoin’s preferred technical structure, the merger of favorable macros is causing the sentiment around BTC.

On the road to the US presidential election on November 3, risky assets show high uncertainty. This drove the US dollar index down, driving up the value of alternative stores.

What’s next to BTC?
Traders cite the spot market as the main bullish driver today. Meanwhile, the futures market is wary, but spot traders continue to accumulate bitcoin.

Derivatives trader Cantering Clark notes that there is little buyer’s demand in the futures market. He said:

“There are not as many aggressive criminals as buyers here. It looks mostly spontaneous. The culprits are still using them to make more bets. ”
Previous bull cycles have been largely driven by the futures market, especially BitMEX and Binance Futures. If there are conflicting trends in the spot and futures markets, this could lead to a lot of volatility in the short term.

If Bitcoin only surpasses $ 12,000, traders believe the rally will lead to a new trend forming. Another pseudonym known as the “Byzantine General” said:

“The books are very thin, over 12,000 in size. If they break, don’t try to shorten them. It’s like standing in front of a freight train. “

Source: CoinTelegraph

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