- Bitcoin experienced a violent rejection at $12,000 on Saturday night. The move resulted in hundreds of millions worth of buy-side liquidations, then millions more on the sell-side on the bounce.
- Analysts say that for Bitcoin to confirm more upside, it will need to flip $11,500 into support.
- Unfortunately, it is unlikely that the cryptocurrency will flip $11,500 as the asset trades at $11,175 just hours before the weekly close.
- Bulls, however, remain in control, as gold continues to press higher into the Monday open.
Bitcoin Needs to Flip $11,500 Into Support to Trigger More Upside
According to a cryptocurrency trader, Bitcoin breaking past and holding above $11,500 will send the asset to $14,000. He shared the chart seen below to back this optimistic assertion.
The chart indicates that as $11,500 has been a pivotal level for BTC over the past two years, BTC turning that zone into support leaves little resistance until $14,000.
Chart of BTC's macro price action with analysis by crypto technician/trader Byzantine General (@Byzgeneral on Twitter). Chart from TradingView.com
Unfortunately for bulls, Bitcoin is unlikely to hold above $11,500 this week as the asset trades over 2% below that level just two hours away from the weekly close.
Vinny Lingham, the chief executive of crypto startup Civic, has shared a bit of a different opinion.
Rather than $11,500, Lingham believes that $12,000 is a pivotal price point for Bitcoin to hold to confirm more upside.
“It was a good call last time. This time it’s likely that Bitcoin holds $12k and consolidates around that level while capital moves into alt coins to test those waters. If $12k holds for a 3-5 days, then we can expect the next phase to be a buildup for a much bigger run…”
It was a good call last time. This time it’s likely that Bitcoin holds $12k and consolidates around that level while capital moves into alt coins to test those waters. If $12k holds for a 3-5 days, then we can expect the next phase to be a buildup for a much bigger run… https://t.co/wQDUnp4rAZ
— Vinny Lingham (@VinnyLingham) August 2, 2020
Bulls Are Still in Control, Analysts Say
Bitcoin may not turn $11,500 into a region of support just yet but analysts say bulls remain in control.
Mike Novogratz, the chief executive of Galaxy Digital and former Goldman Sachs partner, said that Bitcoin will hit $14,000 in the coming months. The investing veteran cited the money printing by central banks, which is boosting the intrinsic value of a scarce asset like BTC.
Dan Tapiero, the co-founder of Gold Bullion International, has corroborated this sentiment. Referencing how a drop in the U.S. dollar against the yen could fuel demand for Bitcoin and gold, he said:
“Crazy chart below suggesting 25% drop in #USD vs Yen. Would be major surprise but consistent with the coming very large #GOLD and #bitcoin upmoves. Would portend several years of 0 US inflation, 0 rates. So much yen strength would require more BoJ stimulus to counterbalance.”
How these narratives transcribe to short-term BTC price action, though, is not clear.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Flipping $11,500 Into Support Could Trigger a Move to $14,000