Earlier in the week, Bitcoin crashed to as low as $11,500 from highs of $12,200 in a couple of hours. For most, this came as a surprise as the top coin was prior to the crash moving sideways and seemingly at higher support. Adding to that, the move to this high came after several attempts to break above $12K, this lured traders into a safe state that it wouldn’t break below this psychological position any time soon.
Since stumbling, Bitcoin has so far failed to get back above $12k but with energetic traders once again swelling, it is thought to be imminent. But will it finally be overcome?
Bulls $12K Call
It still looks unlikely with each failure setting it up for another. As this continues, it is building pressure for investors to sell at the $12K high. As the position proves resilient and the range continues to tighten, speculators will jump to more volatile coins. And with some particular altcoins enjoying significant pumps, they are not short of option. So as Bitcoin once again approaches $12K, the number of sellers needs to be rivaled with buyers to keep prices up.
This will be possible if there’s some form of FOMO that the BTC price is headed to $13K as some analysts have been prognosticating. For this, Bitcoin needs to set a higher resistance at $12,500 and support of $12,200 in the short term. But so far it lacks the necessary spark to trigger such a FOMO.
On a positive note for the bulls, it also lacks a foreseeable negative stir that would also cause panic and lead to a dip below $11K. And for as long as it remains above this lower support, HODLers remain optimistic for a significant breakout in the weeks to come. This is further backed by the coin finding feet in recent days after a drop in its market dominance. The coin has maintained above 58%, showing strength that validates it as the crypto markets’ favorite.
At the time of writing this, Bitcoin is moving sideways just under $11,800. With a tradition of closing the week strong, we are likely to see Bitcoin make yet another move above $12K this weekend.