After recovering 6.3% from a drop to $ 11,200 on August 11, the price of Bitcoin (BTC) seems to be gearing up for a third run on the $ 12K mark.
This comes after a week of bullish news in which Nasdaq-listed investment firm MicroStrategy bought 21,454 BTC as protection against the weakening of the US dollar, Coinbase exchange offering loans with Bitcoin, and the revelation that BlackRock and Vanguard are major holders of MicroStrategy shares.
Snapshot of daily performance of Cryptocurrency. Source: Coin360
The ever-Bullish sentiment is spreading across the entire crypto sector and the evidence here comes from altcoins like Tezos (XTZ) and Chainlink (LINK) which are following above previous highs and a handful of DeFi-related tokens.
Crypto Fear & Greed Index. Source: Alternative.me
The Crypto Fear & Greed Index currently shows that sentiment among investors is high when the indicator ‘Extreme Greed’ reads. This is a sharp contrast from July when the indicator read “Fear” and crypto investors feared that Bitcoin price would fall back into the low $ 10K range.
The daily time frame shows Bitcoin to continue with higher lows as the price consolidates into a tighter range between $ 11,200- $ 11,800. In a recent newsletter to clients, company for market intelligence, Stack Funds said:
“A new test of the $ 12,000 level is in sight as the formation of a bulbous flag crystallizes. Stack believes the current market structure will remain intact unless the $ 10,500 level is broken. Given the current economic background, combined with the weakening of the dollar, we should continue to see bullish momentum ahead for Bitcoin. ”
The company also pointed to the growing correlation of Bitcoin with gold, noting that BTC price corrected 2.7% as gold retreated by 9% earlier this week.
According to the researchers, a unique characteristic of Bitcoin is that its assets are somewhat protected from broader market volatility, as its correlation between gold and equities shifted, depending on the price action with each market. Stacks Funds said:
“Despite the recent peak in BTC-Gold correlation regarding highs in March, the record decline in gold this week has not significantly affected Bitcoin price, as the digital capability returns to the equivalent ratio to maintain its emerging price path.”
Bitcoin daily price chart. Source: Coin360
Altcoins also recovered well from the August 11 correction and Ether (ETH) made waves that managed a strong breakout above the $ 400 resistance level. Ether price went up by 7.88% to a new 2020 high at $ 430 and XRP price went up by 4.04%.
Chainlink (LINK) also reached a new all-time high after rallying from 16% to $ 18.37.
According to CoinMarketCap, the total crypto-market cap now stands at $ 367.4 billion. The dominance index of Bitcoin stands at 59%.
