A couple of hours ago during Asian trading Bitcoin surged to revisit the $12,300 price level which equals its highest price for the year, last made just over two months ago in mid-August.
At the time of writing, it has found resistance there and pulled back to around $12,270 and the next few hours could be crucial for longer-term direction.
More Resistance For Bitcoin to Break
All losses from Bitcoin’s 20% correction have now been recovered and analysts are eyeing another leg up to confirm the bull market. Trader and analyst Tyler D. Coates has observed that the next resistance zone above current levels is the 2019 high of just below $14k.
$BTC target is $13,900 & looking for it to get there by the first week of November. 🧐
If it does then there will be a confluence of resistance from the 0.618 fib & the 2019 high. That being said this is certainly not a time to buy, $12.3K is resistance until proven otherwise. pic.twitter.com/HfG0dTDzYb
— Tyler D. Coates (@Sawcruhteez) October 21, 2020
Fellow analyst Josh Rager was equally bullish adding that both the weekly and monthly charts are working on higher-closes.
“Bitcoin hasn’t had a weekly close above $12,000 since January 2018. Bitcoin had its 20%+ pullback, its time to continue this uptrend,”
While ‘dave the wave’ commented that Bitcoin is already 70% of the way to a full pump back to all-time high again.
Three Arrows Capital co-founder, Kyle Davies, questioned who would start selling once this $12k resistance barrier gets broken’
To be clear, when we break $12k clean on a spot-led move with no leverage, who in the lord’s name will sell at $15k.
And given that no one sells at $15k, who in the lord’s name would sell at $20k.
And when they hear that $BTC is still not ded, how much is a bitcoin worth?
— Kyle Davies (@kyled116) October 21, 2020
In reality, those that bought the dip back in March are likely to be taking profits during this and any subsequent price pumps Bitcoin has. Price does not move in a straight line and there will be more corrections before any returns to $20k.
DeFi Tokens Trounced
Bitcoin may be leading crypto markets today as its market share taps a three month high of 62%, but that has all been at the expense of the altcoins, primarily those related to DeFi.
According to the Messari DeFi Returns Index, there are almost twenty DeFi tokens that have lost double digits over the past seven days. They include Bancor, Curve, Kava, Synthetix, and Balancer.
Other altcoins are also stagnant today including XRP, BNB, LINK, DOT, ADA, EOS, CRO, and XMR as Bitcoin eats into their market shares.
Total market capitalization has increased by around $8 billion in 24 hours as a result and is currently back at just under $380 billion.
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