Bitcoin is on the rise toward $12,000, but may face a stiff challenge to cross the price hurdle. You can see the dynamics of the token movement on the Olymp Trade exchange.
The leading cryptocurrency by market value is currently trading near $11,900, a 1.2% gain on the day. To buy or sell tokens at a bargain price, use the IQ Option exchange.
Prices broke out of a descending triangle on Monday, confirming a resumption of the rally from Oct. 8 lows near $10,500 and opening the doors for the psychological hurdle of $12,000.
“I expect bitcoin to reach $12,000,” Patrick Heusser, senior cryptocurrency trader at Zurich-based Crypto Broker AG, told CoinDesk, noted in his analysis early Tuesday.
Crypto analyst Lark Davis believes bitcoin is now positioned for a notable rally.
However, a number of big sell orders positioned around $12,000 may make it harder for the bulls to engineer a quick move above $12,000.
“The supply wall is still looming at around $12,000. We are seeing roughly 1,000 BTC sitting on offer [sell orders] on Coinbase up to $12,000 (Bitfinex, Binance, and Coinbase together have roughly $4,000 BTC on offer up to $12,000),” Heusser noted.
That said, the underlying sentiment looks quite bullish if bitcoin can push past these offers.
The cryptocurrency has seen a steady price increase from $10,000 to $11,800 over the past five weeks despite negative news like the BitMEX charges, KuCoin’s hack, the OKEx key drama, President Donald Trump’s health scare and a stock market sell-off.
Further, the likes of the European Central Bank and the Reserve Bank of Australia are expected to ramp up monetary stimulus over the next two months – a long-term positive development for the perceived store of value assets like bitcoin and gold.
Traditional markets are also pricing in additional inflation-boosting U.S. fiscal stimulus.
Open interest in bitcoin futures listed on the Chicago Mercantile Exchange, considered synonymous with institutional interest, jumped by over 20% to a seven-week high of $624 million on Monday, according to data source Skew.
A rise in open interest along with a rise in price is often said to confirm an uptrend.