Bitcoin has surged past $12,000 as bulls eye short-term breakout after achieving the highest weekly close in more than two years
Bitcoin has broken above the $12,000 resistance level again and could move higher after hitting a multi-year weekly close milestone over the weekend.
Bitcoin’s price against the US dollar has surged to an intraday high of $12,086, the second time the benchmark cryptocurrency has tested resistance after doing so on August 2.
Although Bitcoin managed to beat a hasty retreat to trade around $11,950, bulls have retained control as prices trend above $12,000 as of writing.
Resilience among bulls comes after rallies over the weekend saw BTC/USD hit a weekly close at $11,686. The last time Bitcoin had a weekly close at or near this level was two and half years ago on January 28, 2018.
Seller congestion at the psychologically significant $12,000 level might prevent an immediate breakout to new multi-year highs. However, according to one analyst, Bitcoin looks strong above $11,000 after its action over the past two years sent prices above a “multi-year bullish triangle”.
Not without several pullbacks
Even though the market expects a price correction to lows around $11,000, analysts are pointing to one fundamental indicator that signals long-term bullishness; demand for Bitcoin and the reluctance seen among hodlers and whales to sell.
Standpoint Research founder, Ronnie Moas, forecasts that Bitcoin adoption has reached an “inflection point,” with institutional investors likely to buy more than it is for whales to sell.
That appears to be the case according to Philip Gradwell, Chief Economist at analytics firm Chainalysis. Gradwell claims that exchange inflows for the top crypto look to have slowed to normal levels following an increase over the past week.
According to Adam, it is likely that Bitcoin whales have no plans for a dump in the short term, resulting in a decrease in selling pressure.
If Bitcoin holds above $12,000, then an assault on $13 and then $15 will be more than likely. At the moment, BTC/USD trades at around $12,010, just over 2.7% up in the past 24 hours. A rejection at $12,000 could see prices plummet to $11,700 levels.