Zephyrnet Logo

This Could Probably Hider Bitcoin’s Bull Rally Above $12000

Date:


Why is Bitcoin Again Swinging?

Bitcoin is known for trending in a very narrow range after any breakout. Each time it crosses a level, it swings in between $200-$400. Currently, Bitcoin which had crossed $12000 levels, a couple of hours before, reached till $12300 mark and dipped surrounding $12200 and below.

Technical indicators suggest that the asset has been overbought, and hence the price had to touch $12400 levels without any difficulty. But woefully, despite the consolidated buying, a bunch of traders are also trying to create a ‘selling pressure’ which may have hindered the Bitcoin bull rally above $12200 levels.

One of the users, Cantering Clark, a derivative trader and co-founder of Blockroots, also mentioned a similar perspective. In his tweet, he mentioned that the futures traders after earning a short-time profit are just selling-off their holding which is causing Bitcoin price again swinging in these particular ranges.

The derivative traders might be following a pattern to exit the market after booking their profits. This may have caused a dump with the price as the traders are selling-off their holdings after acquiring a decent gain.

What Might be the Possible Reason?

The future traders are usually more concerned with the leveraged funds. Therefore, if they acquire those funds there is a huge possibility, the traders might just sell-off. As Coinpedia has earlier reported that future traders are manipulating the Bitcoin price, a similar scenario might have appeared currently. 

Consider the above daily chart of Bitcoin for the last 6 months. The asset had reached above $12000 in mid-August 2020. The traders who have bought the asset somewhere around the high-time might have faced a dip in their investment.

As Bitcoin again regained the levels, the traders created selling pressure due to which the asset might have shed off some $100.However, as shown in the chart a strong resistance is formed around $12,468 and if Bitcoin breaks these levels, the Bitcoin bull rally would be unstoppable.

Source: https://coinpedia.org/news/bitcoins-bull-rally-above-12k/

spot_img

Latest Intelligence

spot_img