After recovering 6.3% from a decline to $ 11,200 on August 11th Bitcoin (BTC) price appears to be gearing up for a third surge to the $ 12,000 mark. According to Coinmarketcap, Bitcoin’s market cap is currently $ 216,429,404,222.
This comes after a week of bullish news These included Nasdaq-listed investment firm MicroStrategy, which bought 21,454 BTC as protection against the weakening of the US dollar, Bitcoin-backed Coinbase exchange offered credit, and revealed that BlackRock and Vanguard are the largest holders of shares in MicroStrategy.
Daily market performance in cryptocurrencies. Source: Coin360
The increasing upward sentiment is spreading across the cryptocurrency sector and proof of this are those Altcoins like Tezos (XTZ) and Chainlink (LINK) top all-time highs and a handful of DeFi tokens who follow suit.
Index of fear and greed. Source: Alternative.me
The Fear and Greed Index is currently showing that investor sentiment is high as the indicator reads “Extreme Greed”.. This is in stark contrast to July, when the indicator was “Scary” and crypto investors feared Bitcoin’s price would drop back into the low $ 10,000 range.
The daily timeframe shows this Bitcoin continues to hit higher lows as the price consolidates in a narrower range between $ 11,200 and $ 11,800. In a recent newsletter, market research firm Stack Funds said:
“Another test of the $ 12,000 level is in sight as a bull flag formation crystallizes. Stack expects the current market structure to remain intact, provided it does not exceed the $ 10,500 level. Given the current economic context coupled with the weakening dollar, we should continue to see positive momentum for Bitcoin. ”
The company also found that Bitcoin is increasingly correlating with gold BTC price was corrected 2.7% while gold fell 9% earlier this week.
According to the researchers, this is a unique feature of Bitcoin The asset is somehow protected from increased market volatility as its correlation between gold and stocks changes depending on price movements in each market. Stacks Funds said:
Despite the recent spike in the BTC-gold correlation, which peaked in March, this week’s record drop in gold hasn’t materially affected the price of Bitcoin as the digital asset regains its relationship with stocks. to maintain its rising price history. “