Bitcoin (BTC) saw its price drop down to $11,200 on the 11th of August, and has seen a recovery of 6.3% as time went on. Now, however, traders within the BTC market are gearing up, planning for a third run to go past $12,000
Very Bullish Sentiments
All the signals are there, since a week of news has made BTC very bullish. One of the critical aspects of this is Coinbase, one of the biggest crypto exchanges out there, is starting to offer loans backed by Bitcoin. Another key bullish indicator is MicroStrategy, an investment firm listed on Nasdaq, purchasing 21,454 in BTC as a means to protect against the USD becoming weaker. Alongside this, it was revealed that Vanguard and Blackrock were significant holders of shares within MicroStrategy itself.
As it stands now, the Crypto Fear & Greed Index is showing an “Extreme Greed” sentiment, making it clear that the bullish sentiment is there. This stands as a very sharp contrast from the sentiments in July, when the Indicator showed “Fear.” This was primarily due to crypto investors being afraid that the Bitcoin price would go back into a low, trapped within the $10,000 range.
Statistics and Sentiments Are There
However, the daily timeframe is making it clear that BTC is experiencing higher lows, with the price starting to consolidate within a tighter range between $11,200 and $11,800.
Stack Funds, a market intelligence firm, has recently given out a newsletter about the matter. In this newsletter, the firm warns that the $12,000 mark will be retested, as yet another bull flag makes itself clear. As it stands now, Stack is convinced that the current structure of the market will stand intact unless the $10,500 level gets breached. However, Stack is putting their money on bullish momentum for Bitcoin in the future, as the weakening USD and economic backdrop makes sentiments for Bitcoin very bullish.
Changing Correlations On A Whim
The firm also highlighted a new, growling correlation BTC has with gold. It took note that BTC’s price corrected by 2.7%. This was corrected just as gold corrected, as well, by 9% earlier this week.
Researchers have already highlighted how Bitcoin is uniquely shielded against the volatility of the wider markets. This is attributed to its correlation shifting between equities and gold, all depending on the price action of each market.
Stacks Funds went into detail, explaining that the recent spike in correlation between BTC and Gold touched new highs in March, this year. However, the record decline gold has seen this week had not significantly impacted the price of Bitcoin. Thus, BTC caught on to an equity-like relationship as a way to keep its upward trajectory.
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