Bitcoin’s price exceeded $11,500 and a key price metric suggests a new test of $12,000

 

Today, the price of Bitcoin (BTC) rebounded from its recent low of USD 11,125 on August 11 to USD 11,617. This suggests that traders are becoming optimistic as key data shows a significant amount of liquidity for BTC to reach USD 12,000.

Cryptocurrency daily market performance snapshot

As the price of BTC went up, many major altcoins did the same. Chainlink (LINK), which experienced strong gains throughout the week, posted a 19.6% gain. Meanwhile, DeFi tokens, such as Compound (COMP), Maker (MKR), Aave (LEND) and Cosmos (ATOM), recorded gains ranging from 20% to 50%.

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The reasons why traders are still bullish about Bitcoin
Historically, the price of Bitcoin has moved towards areas that have greater liquidity and whales tend to target these areas with a group of buy or sell orders to find sufficient liquidity.

For example, if Bitcoin is heavily traded short, it is vulnerable to a small contraction because the whales are likely to target that settlement price. When the shorts are settled, the holders of these orders are forced to buy into the market, causing a demand to buy.

Price analysis at 12/8: BTC, ETH, XRP, LINK, BCH, BSV, LTC, ADA, XTZ, BNB
A pseudonymous trader known as „Byzantine General“ cited data from Hyblockcapital to suggest that there is high liquidity in the range of USD 11,500 to USD 12,000. Many traders apparently shortened Bitcoin on the way down, causing those settlement prices to be present around USD 12,000. The trader said:

„Green day today. Who would have thought? Well, except me, of course. Still a lot of liquidity above us. I say let’s get on with it.“

Bitcoin liquidation levels on the low time frame chart of Bitcoin

Another popular crypto trader known on Twitter as „Redxbt“, said that the Bitcoin recovery „might still have legs“. He seems to be referring to Bitcoin’s breakout from the USD 11,550 resistance level as a sign that the uptrend will continue.

Why doesn’t Bitcoin System have a future?
These optimistic short-term forecasts from traders coincide with a historically accurate indicator that a bullish run is imminent. The Bitcoin Hash Ribbon indicator came on for the first time since it signaled a price increase when BTC was still around USD 9,500.

Market data provider Glassnode said:

„The Bitcoin Hash Ribbon indicator can be used to identify market funds due to the capitulation of miners. It last indicated a buy signal when BTC was hovering around USD 9,500, an increase of more than 20% since then.