Bitcoin bulls are back after weeks of consolidation. The leading cryptocurrency thrust higher towards $12,000 on Tuesday morning. The coin now trades just shy of that crucial price resistance at $11,970.
The cryptocurrency is expected to move higher in the days ahead as macro trends favor Bitcoin bulls.
Bitcoin’s rally comes as altcoins have suffered a retracement, with most dropping a few percent across the board as a weird market dynamic emerges where altcoins seriously underperform BTC.
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Bitcoin Surges to $12,000
Bitcoin is poised to tap $12,000 as bulls renewed their buying pressure heading into Tuesday morning. The cryptocurrency is currently up 2% in the past 24 hours, having traded as high as $11,800 yesterday.
Chart of bTC's price action voer the past few weeks. Source: BTCUSD from TradingView.com
Analysts think that Bitcoin’s recent price action is a precursor to a further move higher.
One trader noted that the open interest of BTC futures suggests that the coin is reaching a point to buy:
“Open Interest: the # of outstanding futures contracts that have not been settled. For each buyer there must be a seller. From the time the buyer/seller opens a contract until the counter-party closes it, that contract is considered open. Current levels look bullish.”
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Altcoins are underperforming BTC by many percent during this move higher.
According to CoinGecko data, leading DeFi coins have plunged 5-20% in the past 24 hours. It seems as though capital from altcoins is cycling into Bitcoin en-masse, likely due to macroeconomic trends favoring BTC over altcoins.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Shoots Towards $12,000 as Capital Flows Back Into BTC