A Bitcoin notable breakout was responsible for the asset hitting below $12,000 despite the coin surging from the $11,800 baseline in a few hours. The move brought BTC above the main $12,000 region which acted as resistance over three rallies in the past two weeks so let’s read more about the analysis in our latest bitcoin news.
Bitcoin is going lower as the bears initiated a strong sell-off. Over the past hour, the asset dropped from $12,240 to a low of $11,920. Bitcoin now trades at $12,040 as of the time of writing with buyers stepping in to hold the line of $12,000. The Bitcoin notable breakout liquidated $23 million of BitMEX positions which is important for the bull case as the funding rate of the future exchanges tracks how overextended long or shorts are is now in the positive. The neutral funding rate will be seen before Bitcoin moves higher once again which signals that neither side of the market is overleveraged.
Bitcoin’s correction was triggered by a similar movement in the lower region in the value of gold and equities which plunged at the same time when BTC did. The magnitude of the individual moves was different as the directionality and timing were similar. This suggests that the short-term frame for Bitcoin will follow the trajectory of gold and stocks. On a longer-term, many analysts remain optimistic. One trader even predicted that the ongoing correction will happen hours ago. According to him, Bitcoin is trading into the grey zone and said that it would present an opportunity to open a long position to target the $14,000. Like most analysts, this trader thinks that Bitcoin will break above $12,000 fueling it up towards the next important resistance close to the $14,000.
We previously reported that the bulls led the price higher to $12,125 which was recorded as the 2020 high since the start of August. The key level succeeded to defeat the bullish BTC traders on two occasions during the first week of August. Will it be a third time including the $12,100 level? The macrodata confirms the ongoing bull trend as most of the top 100 digital assets has been in the green over the past three months.
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