Let us check the crypto market. Bitcoin’s price is near twelve thousand dollars again. Nevertheless, it can cause more harm than good if bulls will fil to flip it to support.
On Tuesday, BTC (Bitcoin) bulls mustered enough strength to push the price of Bitcoin slightly above the twelve thousand dollar mark. It is a level not seen since September one.
Continued buying followed Monday’s high-volume surge to $11,822 into Tuesday. So, that move occurred after that. Thus, it provided enough momentum for bulls to push above the ascending channel to $12,038.
Soaring volumes across the top Bitcoin futures exchanges accompanied the rally to $12K on Monday through Tuesday. Earlier this week, Cointelegraph reported that the most recent CME commitments of traders’ reports are exhibiting institutional longs reached a record high.
Investors feared a stalemate between Republican and Democrats lawmakers in Congress would prevent the passing of the second round of economic stimulus. That stimulus is to alleviate the financial placed on Americans and small businesses in need of a second stimulus check. Thus, at the start of the week, traditional markets took a hit.
By today’s market closure, the Nasdaq, Dow, and S&P 500 wrapped the day up with marginal gains.
Nancy Pelosi, United States House Speaker, said that they felt optimistic concerning a deal being struck between the White House and Congress. After that, the Dow closed a hundred points.
The recent price action of Bitcoin has been dislodged from that of the equities market. Thus, it led some analysts on crypto Twitter to call again for a decoupling. Nevertheless, all that seems a bit premature.
The digital assets are remaining one of the tops performs of 2020. It is currently up 65.4% year-to-date, regardless of where one stands on Bitcoin price decoupling from traditional markets.
Today’s daily high is $12,038. Thus, it is only ten dollars away from the previous high on September one. On that day, Bitcoin prices formed a tweezer top and corrected 18.5% over the next few days. Thus, traders expressed mixed feelings concerning the price hovering near twelve thousand dollars again. Primarily you must consider that sharp sell-offs followed the last five visits to this resistance.
It is usual for some profit booking to take place when an ascending channel in the trendline is broken near a critical resistance level. Typically, it results in the price drop to retest either the former resistance like $11,900 or the ascending channel trendline.
Bitcoin was trading around $11,940 fourteen hours ago.
That is the situation in the crypto market.