Bitcoin (BTC) begins its attempt to break the $12,000 mark, despite Sunday’s rapid price drop of 12.52%. After breaking strong resistance at $10,000 last July 27, Bitcoin has since risen to $12,000. The king of crypt coins is currently at $11,800, up 63% this year so far.
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Bitcoin Situation (BTC)
After a consolidation, Bitcoin had the long-awaited $10,000 break, amidst news of the generous $1 trillion U.S. stimulus proposal. In addition, the cryptographic intelligence company, Intotheblock, revealed that 91% of all BTC hodlers have benefited from the price increase.
Five days later, Bitcoin experienced a sudden shock, dropping approximately 12.52% in price in less than an hour. That was a price difference of about $1,500. The sudden slide certainly took traders off guard, liquidating nearly $1.4 billion in positions on the major encryption exchanges.
Analysis of the situation
Last Sunday’s price drop was allegedly caused by an Asian whale, which made a profit when the price of Bitcoin reached $12,000. A ripple effect followed, causing a huge price drop.
Bitcoin investors were quick to shake off the bad news. As reported by Glassnode, an analysis firm of Blockchain, the encryption exchanges saw 4,264 BTCs withdrawn on Sunday, a strong boost from the 436 BTCs recorded a day earlier. The data implies that investors are relying on Bitcoin for the long term, ignoring the collapse.
On August 5, BTC/USD recovered quickly with a 4.96% gain, erasing the previous decline. According to analysts, the price of Bitcoin is likely to advance with the government and central bank liquidity pumping programs and, the U.S.-China trade war as the main catalysts. Market technicians see bullish signals for BTC/USD as it moves above the 50, 100 and 200 day simple moving average lines.