It hasn’t been the best past few hours for Bitcoin bulls. The leading cryptocurrency took a $1,500 price drop in the span of about five minutes, liquidating hundreds of millions worth of long positions as buyers were overextended.
Bitcoin has since bounced back to $11,300, yet the rejection at $12,000 is still clear as day.
For BTC to continue higher, an industry executive thinks BTC must retake and hold the $12,000 region. He made the same comment in May 2019, which was before BTC also consolidated under $12,000 before exploding to $14,000.
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Bitcoin Must Retake and Hold $12,000 Region
Vinny Lingham, the chief executive of cryptocurrency startup Civic, said $12,000 is pivotal for Bitcoin moving forward. Prior to the dump, the industry executive argued that Bitcoin needs to consolidate around $12,000 to confirm the ongoing uptrend:
“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
For context, $12,000 has been a level of macro importance for Bitcoin.
Below is a chart of BTC’s price action over the past three years, since the middle of 2017. As can be seen, multiple candles bounced off of and were rejected almost exactly at $12,000, showing it is a level traders consider to be technically significant.
Chart of BTC's price action over the past three years with a white line at $12,000 from TradingView.com
Bitcoin past this level, then confirming it as support will add to the bull case, as Lingham explains.
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Bulls in Control
Although Bitcoin did face the nasty rejection slightly above $12,000 just hours ago, most analysts think bulls are still in control.
One trader shared that as long as BTC holds $10,500 on a weekly time frame, it’s fair to say that the uptrend is intact. This optimistic quip was made in reference to the importance of $10,500. Bitcoin was rejected at that price level on three separate rallies: one in October 2019, one in February 2020, and one just a few weeks ago in June.
The fundamentals purportedly corroborate sentiment that the technical uptrend is valid. As reported by NewsBTC previously, macro investor Dan Tapiero said that he thinks Bitcoin and gold to soon undergo strong “upmoves” due to trends like low interest rates and an…