Bitcoin, Cryptocurrency, News & Updates

Why $12,000 Is Bitcoin’s “Last Great Resistance”?

August 17, 2020

Bitcoin has struggled vastly at the $12,000 resistance in the past two weeks. At four separate occasions over this timetable, the leading cryptocurrency has been cleanly prohibited at $12,000. Often, the refusal took place at that level precisely, down to a few dollars.

Though some analysts don’t assign much importance to that price level, one says that $12,000 is factual “the last great resistance”.

When bitcoin finally breaks that level, analysts say that it will be set to move towards $13,000, $14,000, and higher.

Opportunely for Bitcoin bulls, several market catalysts suggest consumers will soon regain the level.

Why does Bitcoin need to break past $12,000?

$12,000 is Bitcoin’s last significant on-chain opposition, according to data shared by David Puell, Head of Research at the now-closed Adaptive Capital.

Puell shared the chart seen below last August 16th, which recommends that $12,000 is vital because it is the point at which buyers of the 2019 highs will reach breakeven:

“CIH is the delta between two volume profiles (in this case from 2018 onward): bitcoins unmoved (assumed as hodling) and bitcoins moved (assumed as distribution). Three levels of major buyouts are noticeble—two remain as major demand zones; one as a last major resistance.”

Chart of BTC’s price action with the Change in Holdings from David Puell (@kenoshaking on Twitter), on-chain analyst and Bitcoin trader. Chart from WhaleMap

The researcher later shared data presenting the holding habits of BTC whales. Puell says that these whales will also breakeven in the $12,000 region, providing the level even more important than it already has.

Analysts say Growth Past $12,000 Is Imminent

There are signs that Bitcoin will momentarily see progress past $12,000.

Earlier this month, Mike Novogratz of Galaxy Digital stated that Bitcoin could reach $14,000 in the coming months. He added that BTC reaching $20,000 this year is entirely feasible. Novogratz quoted the massive amount of money printing and the arrival of interest in Bitcoin versus customary asset classes:

“Bitcoin still has a lot of retail interest in it. A lot of that retail interest shifted to the story stocks, to the tech stocks, because they were just more fun … Yesterday you saw a lot of money shift back over to gold and bitcoin.”

The others that contribute to the concept that Bitcoin will see further growth from here contain multiple accurate technical analysts and Novogratz’s contemporaries.

Leave a Comment

Leave a Reply