Bitcoin price hit $12,000 again, leading traders to turn bullish as BTC attempts to turn the key level to support.
After reaching $12,000, traders are becoming more hopeful that the digital asset will hold the key level this time.
Since August 2, Bitcoin has hit the $12,000 level four times, but reaching the crucial resistance level to support has been an enormous challenge.
According to the latest data, the ETH price increased by 9.8% and hit $479,21, while XPR boosted 3.37% to $0.2917.
Three factors lead traders to become more bullish Bitcoin in the short term:
- The potential catalysts are the declining U.S dollar
- The strength of the $10,000 support
- Ether’s sharp rise
As stated by Scott Melker, digital assets trader, the U.S. dollar is dipping as the dollar breaking down from a 10-year long channel and demonstrating a clear rejection. He added that the dollar has stumbled, there was an assumption that it was increasing. However, there’s nothing bullish.
Many analysts think that falling the dollar is good for BTC as alternative store value is priced in dollars. If we look through the recent month, it’s evident that the dollar has dipped significantly against other reserve currency. Besides, gold and Bitcoin have hit steep recovery since April.
The strong $10,000 support level of BTC increases the chances of a larger recovery as this is the longest period BTC has been more than $10,000 since its record in 2017.
Besides, Eric Thies, a cryptocurrency technical analyst, hinted that Bitcoin might never drop below $10,000 again.
Analysts at Cryptowatch expect BTC to reach an all-time high by November. The researches said that BTC is tracking well against the S2F model (Stock to Flow). BTC forecasts predict an all-time high by mid-November and 27k by the end of the year.