Bitcoin Price Eyes New 2020 High Once Bulls Break $11.8K Resistance

Bitcoin (BTC) price perked up on August 5, rallying from $11,090 to $11,784 before briefly retracing to the $11,650 area as the daily close approached. Currently the price trades near the $11,500 support after bulls were unable to tackle the $11,800 level. 

Despite a pullback to lower support, Wednesday’s 6.29% push through the $11,100 to $11,250 zone was much needed as the price had lingered below this level for about 3 days. 

BTC/USD 4-hour chart

BTC/USD 4-hour chart. Source: TradingView

As the 4-hour chart shows, once above $11,450, traders were able to slice through the $150 gap on the volume profile visible range and pursue the completion of a W-bottom reversal pattern but failure to pierce $11,800 prevented this. 

As reported by Cointelegraph earlier this week, the August 2 flash crash which saw Bitcoin price drop $1,500 in minutes and liquidate $1 billion did little to shake the bullish resolve of professional traders.

According to GSR market analyst Micah Erstling:

“The large percentage of headlines and traditional investors looking for higher yielding assets has led to a larger shift into crypto. As a result, open interest in futures listed on major exchanges reached a new lifetime high of $5.6 billion on August 1, surpassing the previous record of $5.36 billion in February. 

Given the increased bullish sentiment, funding rates prior to the crash were at unsustainable levels as the funding rate for Bitcoin was hovering around 0.0721%. Furthermore, the imbalance for ETH was even worse as the funding rate was at 0.21%. However, post sell off, funding rates have stabilized despite still indicating a bullish tilt.”

Bitcoin daily price chart

Bitcoin daily price chart. Source: Coin360

Altcoins also notched notable gains as Bitcoin spent a few days consolidating and a few managed double digit gains as BTC price broke out to $11,750. 

Bancor (BNT) rallied 26.50%, Zcash (ZEC) gained 7.99%, and Band Protocol (BAND) surged higher with a 39.53% gain. 

According to CoinMarketCap, the overall cryptocurrency market cap now stands at $351.5 billion. Bitcoin’s dominance index currently at 61%.

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