Bitcoin has been incurring massive volatility as of late that has been perpetuated by its inability to decisively move into the $12,000 region, which has proven to be a strong level of resistance that may prove to be a difficult level to break above in the near-term.
Despite facing a steep pullback today, analysts are noting that Bitcoin could still target its recent highs of $12,300 in the near-future, with a decisive break above this level potentially leading to a massive move up.
Bitcoin Plummets to $11,400 as Selling Pressure Ramps Up
At the time of writing, Bitcoin is trading down nearly 4% at its current price of $11,400, which is down significantly from its daily highs of $11,900 that were set yesterday.
Over the past week, BTC has attempted and failed on multiple occasions to break above $12,000, which has become a strong level of resistance for the cryptocurrency that is likely to continue holding strong in the near-term.
Although each move to above $12,000 has resulted in a subsequent drop, analysts are noting that Bitcoin’s bulls may still be able to maintain control over the cryptocurrency in the near-term and could lead it to soon surge back towards $12,300.
HornHairs, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that the strong support Bitcoin has found during this recent drop is actually a bullish development.
“$BTC thoughts: Solid 4H close as price closed above both the 1D OB support and consolidation range low after touching the previous swing high. Seems like a perfect storm is set for price to reach towards the range high now shown by the dashed red line at $12.3k,” he explained.
Will BTC Soon Surrender Any of Its Dominance?
Through the course of Bitcoin’s uptrend that first started in early-2019, the crypto has incurred a significant amount of dominance over the markets, which has neared levels not seen since early-2017.
Today’s price drop proved to be a positive thing for the aggregated crypto markets, as most major altcoins have surged today against their BTC trading pairs.
Big Chonis, another popular crypto analyst on Twitter, spoke about this in a tweet, saying:
“$BTC – dominance rejection at resistance… already seeing some relief bounces in some alts… reference BTC pairs not USD,” he explained.
Because today’s drop proved that altcoins are currently facing an inverse correlation with Bitcoin, it is highly probable that a surge up to $12,300 in the near-term will lead most altcoins to plummet lower.