Markets Report Bitcoin Price retakes $12,000
Bitcoin,  Commentary,  Markets Report

Bitcoin retakes $12,000 as analytics firm CEO says bull run has now begun

“Pivotal” resistance at $11,900 gives way to highs of $12,300 as bullish hopes continue to come true this week

Bitcoin hit almost $12,400 on October 21 as consolidation at key levels ended in a fresh breakout.

Data from price trackers including CoinMarketCap followed BTC/USD as bulls gained control for another attempt at quashing $12,000 resistance. 

After ruminating at near $11,900—a level which analysts had called “pivotal”—a final push allowed Bitcoin to cross and remain above $12,000.

At press time on Wednesday, the largest cryptocurrency had retained its latest gains, hovering at just below $12,300. Highs on the day were at just below $12,400, as PayPal added to the mood by confirming that it would support cryptocurrency payments in 2021.

Rager: Bitcoin pullback is complete

The move served to bear out the optimistic prognoses from various traders and analysts. As Modern Consensus reported throughout this week, the mood favored bulls to take the market higher ever since a reversal towards $11,000 support ended to the upside.

Now, attention focused on the next instalment of what Ki Young Ju, CEO of on-chain monitoring resource CryptoQuant, publicly stated was just the formal start of the Bitcoin bull run.

“Both the weekly and monthly charts are working on higher-closes. Bitcoin hasn’t had a weekly close above $12,000 since January 2018,” trader Josh Rager summarized in his latest note to Twitter followers on Wednesday. 

“Bitcoin had its 20%+ pullback, its time to continue this uptrend.”

Cantering Clark, a veteran derivatives trader who publishes regular market analysis together with Rager, struck a similar tone. For him, a move higher for stock markets would provide further ideal circumstances for BTC price appreciation.

“If equities push higher, $BTC will have insane tailwinds and ‘permission’ to gun upward. There will be no offers on the book,” he tweeted on the day.

Statistician confirms macro decoupling

Data from on-chain monitoring resource Skew meanwhile continued to show the extent to which Bitcoin was diverging from stocks and other traditional macro assets. While BTC/USD gained 8.5% in the past week, for example, the S&P 500 lost 2.8%.

Willy Woo, the well-known statistician who in September forecast that the trend would continue, doubled down on his theory as $12,000 appeared.

“The decoupling is upon us 🙂 Makes sense that BTC will continue to be correlated in short timeframe trading; but not in the longer timeframes,” he wrote. 

“BTC is a safehaven, just that ‘risk-on’ (meaning it’s very new) is skewing this fact.”

Bitcoin versus S&P 500 realized correlation. Source: Skew

On the topic of safe haven status, Wednesday saw news that yet another company had chosen to convert part of its treasury from fiat currency to Bitcoin. This time, it was UK-based Mode Global Holdings which said it would convert up to 10% of its funds to BTC.

The BTC funds of other recent converts gained significantly over the past week, with MicroStrategy’s $425 million buy-in now worth $466 million. Payment network Square, which invested $50 million earlier this month, gained an extra $7 million.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.