Bitcoin Price Eyes New 2020 High Once Bulls Break $11.8K Resistance
Bitcoin price is gearing up for a second attempt at $12,000 and altcoins continue to rally higher.
Bitcoin (BTC) price perked up on August 5, rallying from $11,090 to $11,784 before briefly retracing to the $11,650 area as the daily close approached. Currently the price trades near the $11,500 support after bulls were unable to tackle the $11,800 level.Â
Despite a pullback to lower support, Wednesdayâ€™s 6.29% push through the $11,100 to $11,250 zone was much needed as the price had lingered below this level for about 3 days.Â
BTC/USD 4-hour chart. Source: TradingView
As the 4-hour chart shows, once above $11,450, traders were able to slice through the $150 gap on the volume profile visible range and pursue the completion of a W-bottom reversal pattern but failure to pierce $11,800 prevented this.Â
As reported by Cointelegraph earlier this week, the August 2 flash crash which saw Bitcoin price drop $1,500 in minutes and liquidate $1 billion did little to shake the bullish resolve of professional traders.
According to GSR market analyst Micah Erstling:
â€œThe large percentage of headlines and traditional investors looking for higher yielding assets has led to a larger shift into crypto. As a result, open interest in futures listed on major exchanges reached a new lifetime high of $5.6 billion on August 1, surpassing the previous record of $5.36 billion in February.Â
Given the increased bullish sentiment, funding rates prior to the crash were at unsustainable levels as the funding rate for Bitcoin was hovering around 0.0721%. Furthermore, the imbalance for ETH was even worse as the funding rate was at 0.21%. However, post sell off, funding rates have stabilized despite still indicating a bullish tilt.â€�
Bitcoin daily price chart. Source: Coin360
Altcoins also notched notable gains as Bitcoin spent a few days consolidating and a few managed double digit gains as BTC price broke out to $11,750.Â
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