Bitcoin surpassed $11,400 for the third time in three days, the next target is $12,000?
Bitcoin price has crossed $ 11,400 for the third time in three days, breaking a key resistance level. Earlier today, the BTC price reached $ 11,444, but it quickly declined to return to the $ 11,250 range.
Surprisingly, within the past hour, the price has risen above $ 11,400 again, and some traders believe that retesting resistance multiple times may increase the chances of a breakout.
Currently, resistance from $ 11,200 to $ 11,400 appears to be triggering sellers to defend this level and prevent a major breakout.
However, Kelvin Koh of Spartan Group said that when BTC breaks out of $ 11,400, it is likely to rise to $ 12,000. Meanwhile, analyst Willy Woo said that a rise of Bitcoin above $ 11,000 could mark the beginning of a major bull run for Bitcoin.
Investors are optimistic about a Bitcoin bull run
On June 27, Willy Woo revealed a new pricing model for BTC. The model proposes that a new bull run for the leading cryptocurrency is producing.
“This is a new model I’m working on; it picks the start of exponential bull runs. 1) Bitcoin was setting up for a bullish run until the COVID white swan killed the party. 2) This model suggests we are close to another bullish run. Maybe another month to go.”
Source: Willy Woo/ Twitter
A month has passed since the model was revealed, and the price of Bitcoin has risen from $ 9,100 to over $ 11,000. Following the model, Woo said he was pretty confident about the main stage of rapid growth.
Woo relied on Bitcoin’s mempool and the RSI index to assess the market cycle. According to him, the RSI indicates that the main bull market may start in the fourth quarter.
“With the current break to 11K, I’m relatively confident last months model is working on queue, we’re at the start of the ‘main bull phase’… 365-day on-chain RSI shows the compression at the early phase of the bull cycle nearing completion, I’m expecting RSI expansion that typifies the main bull season run starting Q4 2020 into 2021.”
Another factor that may have an impact on Bitcoin is the large number of purchase orders that supported this highest push.
Analyst “Big Cheds” has released a chart showing that BTC is breaking out of the bullish flag.
“Bitcoin 4 hour – Flirting with a new leg up.’
Source: Big Cheds / Twitter
While talking about Bitcoin’s short-term outlook, Koh said that if the price of Bitcoin continues to rise above $ 11,400, it will maintain the momentum. But if BTC continues to rise, investors insist that altcoins can consolidate.
“If BTC breaks the resistance at $11.4K, we are going above $12K in no time. Will take the wind out of altcoins again in the short term.”
The sentiment is not bullish until BTC surpasses and holds above $ 12,500
According to David Lifchitz, the ExoAlpha chief investment officer, profit-taking from well-functioning DeFi tokens has boosted BTC and ETH. The initial boom then led to short contracts on liquidated futures exchanges.
As Bitcoin began to rise, DeFi tokens and other leading altcoins began to decline, which reinforced the argument. Assets like Compound, Chainlink, and Cardano, outperforming BTC in June, have stalled for the past few days.
In the short term, Lifchitz says a pullback can occur when the market cools, but if BTC breaks above $ 12,500 and stays above it, a bull market could become a reality.
“So basically, the run-up in Bitcoin seems more driven by rotation and a devaluating USD than a genuine interest in the coin, but should BTC reach and remain above $12,500 (i.e. July 2019 high) it could change the narrative. In the short term, a small pullback might be in the making, which would be healthy from here before engaging in a new run to $12,500.”
Overall, traders and analysts are still positive after Bitcoin rose relatively quickly above $ 11,000.
- The $14,000 region as the next major upside target for Bitcoin price
- Ethereum addresses in profit now exceed the total number of addresses with a Bitcoin balance