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- Bitcoin experienced a violent rejection at $12,000 on Saturday night. The move resulted in hundreds of millions worth of buy-side liquidations, then millions more on the sell-side on the bounce.
- Analysts say that for Bitcoin to confirm more upside, it will need to flip $11,500 into support.
- Unfortunately, it is unlikely that the cryptocurrency will flip $11,500 as the asset trades at $11,175 just hours before the weekly close.
- Bulls, however, remain in control, as gold continues to press higher into the Monday open.
Bitcoin Needs to Flip $11,500 Into Support to Trigger More Upside
According to a cryptocurrency trader, Bitcoin breaking past and holding above $11,500 will send the asset to $14,000. He shared the chart seen below to back this optimistic assertion.
The chart indicates that as $11,500 has been a pivotal level for BTC over the past two years, BTC turning that zone into support leaves little resistance until $14,000.
Chart of BTC's macro price action with analysis by crypto technician/trader Byzantine General (@Byzgeneral on Twitter). Chart from TradingView.com
Unfortunately for bulls, Bitcoin is unlikely to hold above $11,500 this week as the asset trades over 2% below that level just two hours away from the weekly close.
Vinny Lingham, the chief executive of crypto startup Civic, has shared a bit of a different opinion.
Rather than $11,500, Lingham believes that $12,000 is a pivotal price point for Bitcoin to hold to confirm more upside.
“It was a good call last time. This time it’s likely that Bitcoin holds $12k and consolidates around that level while capital moves into alt coins to test those waters. If $12k holds for a 3-5 days, then we can expect the next phase to be a buildup for a much bigger run…”
It was a good call last time. This time it’s likely that Bitcoin holds $12k and consolidates around that level while capital moves into alt coins to test those waters. If $12k holds for a 3-5 days, then we can expect the next phase to be a buildup for a much bigger run… https://t.co/wQDUnp4rAZ
— Vinny Lingham (@VinnyLingham) August 2, 2020
Bulls Are Still in Control, Analysts Say
Bitcoin may not turn $11,500 into a region of support just yet but analysts say bulls remain in control.
Mike Novogratz, the chief executive of Galaxy Digital and former Goldman Sachs partner, said that Bitcoin will hit $14,000 in the coming months. The investing veteran cited the money printing by central banks, which is boosting the intrinsic value of a scarce asset like BTC.
Dan Tapiero, the co-founder of Gold Bullion International, has corroborated this sentiment. Referencing how a drop in the U.S. dollar against the yen could fuel demand for Bitcoin and gold, he said:
“Crazy chart below suggesting 25% drop in #USD vs Yen. Would be major surprise but consistent with the coming very large #GOLD and #bitcoin upmoves. Would portend several years of 0 US inflation, 0 rates. So much yen strength would require more BoJ stimulus to counterbalance.”
How these narratives transcribe to short-term BTC price action, though, is not clear.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Flipping $11,500 Into Support Could Trigger a Move to $14,000
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.