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Bitcoin struggling to hit $ 12,000

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Bitcoin (BTC) begins its attempt to break the $ 12,000 mark, despite the rapid price drop by 12.52% on Sunday. After breaking the strong resistance at $ 10,000 on July 27, Bitcoin has since risen to $ 12,000. The king of cryptocurrencies is currently hovering around $ 11,800, up 63% this year to date.

Situation with Bitcoin (BTC)

After a consolidation, Bitcoin had the long-awaited breakout of $ 10,000, amid news of the generous $ 1 trillion stimulus proposal from the United States. Furthermore, crypto intelligence firm Intotheblock revealed that 91% of all hodlers of BTC have benefited from the price increase.

BTC / USD is targeting resistance at $ 12,000 (daily chart). Source: PrimeBit WebTrader

Five days later, Bitcoin experienced a sudden hit, dropping about 12.52% in price in less than an hour. That was a price difference of around $ 1,500. The sudden slippage certainly caught traders off guard, liquidating nearly $ 1.4 billion worth of positions on major crypto exchanges.

BTC / USD drops 12.52% in one hour (hourly chart). Source: PrimeBit WebTrader
BTC / USD drops 12.52% in one hour (hourly chart). Source: PrimeBit WebTrader

Analysis of the situation

Last Sunday’s price drop was allegedly caused by an Asian whale, which made a profit when the price of Bitcoin hit $ 12,000. This was followed by a rippling effect that caused a huge drop in prices.

Bitcoin investors were quick to shake off the bad news. As reported by Glassnode, a Blockchain analytics firm, crypto exchanges saw 4,264 BTC withdrawn on Sunday, that’s a strong boost from the 436 BTC recorded a day earlier. The data implies that investors trust Bitcoin for the long term, ignoring the collapse.

On August 5, BTC / USD rallied quickly with a 4.96% gain, erasing the previous drop. According to analysts, the price of Bitcoin is likely to advance with the liquidity pumping programs of the government and the central bank and the trade war between the United States and China as the main catalysts. Market technicians see bullish signals for BTC / USD as it moves above the 50, 100 and 200 day simple moving average lines.

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