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Factors Probably Hindering Bitcoin’s Bull Rally Above $12000

Highlights

    Bitcoin surged above-expected levels to cross $12000 levels in the last 24 hours

    Some other factors have emerged that took the price to current levels, however, with the continued trend, price is feared to plunge.

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.

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

bitcoin chart

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.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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