After rebounding 6.3% from a drop to $ 11,200 on August 11, Bitcoin (BTC) price appears to be gearing up for a third run above the $ 12k mark.
This came after a week of bullish news that included Nasdaq-listed investment firm MicroStrategy for buying 21,454 BTC to protect against a weakening US dollar, exchange Coinbase offering backed loans. in Bitcoin and revealed that BlackRock and Vanguard are the main holders of MicroStrategy shares.
A snapshot of the daily market performance of a cryptocurrency. Source: Coin360
The bullish sentiment increasingly spread across the entire crypto sector, and proof of this comes from altcoins like Tezos (XTZ) and Chainlink (LINK) that climbed above all-time highs before and some DeFi-related tokens followed.
Crypto Fear & Greed Index. Source: Alternative.me
The Crypto Fear & Greed Index now shows that investor sentiment is high as it reads ‘Extreme Greed’. This is a stark contrast from July when the indicator read “Fear” and crypto investors fear Bitcoin price will drop back to the low $ 10,000 range.
The daily timeframe shows that Bitcoin continues to make higher lows as the price consolidates into a tighter range between $ 11,200- $ 11,800. In a recent newsletter to clients, market intelligence firm Stack Funds said:
“A retest of $ 12,000 is in sight as the formation of a bullish flag crystallizes. Stack believes that the current market structure will remain intact unless $ 10,500 is broken. Given the current economic climate coupled with a weakening dollar, we will continue to see bullish momentum for Bitcoin. ”
The company also pointed out Bitcoin’s growing correlation with gold, noting that the price of BTC corrected 2.7 percent as gold fell 9 percent earlier this week.
According to the researchers, a unique feature of Bitcoin is that the asset is somewhat protected from the broader market volatility as the correlation between gold and stocks changes depending on the price action of each. market. Stacks Funds said:
Although the recent spike in BTC-Gold correlation hit a March high, this week’s record drop in gold has not had a significant effect on Bitcoin’s price, as the digital asset started. to return to equity-like relationship to maintain its upward trajectory. ”
Daily Bitcoin price chart. Source: Coin360
Altcoin also recovered well after the August 11 correction and Ether (ETH) generated waves managing strong breakouts above the $ 400 resistance level. Ether price surged 7.88% to new year highs. 2020 is $ 430 and the XRP price increases by 4.04%.
Chainlink (LINK) also hit a new all-time high after rising 16% to $ 18.37.
According to CoinMarketCap, the overall crypto market cap represents $ 367.4 billion. Bitcoin’s dominance index is currently at 59%.