Bitcoin has continually failed to hold the $ 12,000 price level with recent corrections taking it below $ 11,500 in recent days. The price is currently up 2.97% and is trading sideways in a tight range slightly above the $ 11,700 support area. According to cryptanalyst Michael Van De Poppe, a pullback below $ 11,300 could cause Bitcoin to drop to $ 10,000.
The recent drop does not present any surprises for investors who prefer to see it as a monumental moment for people to accumulate more bitcoin as, in September, Bitcoin is very likely to set an all-time high of $ 20,000.
Unlike June and July, the price of Bitcoin in August has seen more setbacks leading to the massive liquidation of futures contracts of $ 1 billion on August 2 and $ 234 million more recently, on various derivative exchanges.
$ 11,600 Support Level Critical for Bitcoin's Next Price Movement
For bitcoin to retest $ 12k, buyers will need to be strong enough to force it to break above the $ 11,800 resistance level, failure to which the price could plummet to lower support levels.
Below the $ 10,000 mark, the lower support zone will be at $ 9,700, although traders don't see Bitcoin going back that far.
“The crucial area for $ BTC is the 11,400-11,600 area. If we keep it we can consolidate a bit and have some decent rebounds. Losing the zone and I think the CME gap at 9,700 is a serious scenario. "
Nonetheless, professional traders are extremely bullish on Bitcoin. Both the sudden $ 1,500 drop on Aug 2 and the recent $ 1,000 pullback have not shaken long positions for traders on major exchanges such as OKEx and Binance placed in late July. Despite the ups and downs, traders are optimistic as the cryptocurrency market continues to outperform stocks.
"I have traded US stonks for almost 10 years and I have traded crypto for almost 10 years and I can tell you that in 2020 it is still much easier to make money with crypto than US stonks."
Bitcoin's next bull run will be epic
The government's fiscal plans will continue to pump more money into the economy, which is bad for the US dollar but good for the market valuation of Bitcoin, depending on how much will be used to acquire bitcoin.
According to professional analyst Max Kaiser, recent developments in the traditional market, such as Warren Buffett's abandonment of stocks for gold, indicate a huge upward movement in Bitcoin prices. If 1% of the global allocation ($ 1 trillion) goes to Bitcoin, its price will reach $ 50,000.
Experienced cryptocurrency trader Scott Melker has also stated that shopping in the falls is smarter to sell for fear of short-term setbacks, as the bull market is about to start.
"It's going to be difficult to enjoy the epic bull run if you trade all your money and have nothing left for when it happens."