Bitcoin Price Eyes New 2020 High

The Bitcoin (BTC) price perked up on Aug. 5, rallying from $11,090 to $11,784 before briefly retracing to the $11,650 area as the daily close approached. Currently, the price trades near the $11,500 support after bulls were unable to tackle the $11,800 level. Despite a pullback to lower support, Wednesday’s 6.29% push through the $11,100 to $11,250 zone was much needed, as the price had lingered below this level for about three days.

As the 4-hour chart shows, once above ,450, traders were able to slice through the 0 gap on the volume profile visible range and pursue the completion of a W-bottom reversal pattern; however, failure to pierce ,800 prevented this. As reported by Cointelegraph earlier this week, the Aug. 2 flash crash that saw the Bitcoin price drop

,500 in minutes and liquidate billion did little to shake the bullish resolve of professional traders.

According to GSR market analyst Micah Erstling: “The large percentage of headlines and traditional investors looking for higher yielding assets has led to a larger shift into crypto. As a result, open interest in futures listed on major exchanges reached a new lifetime high of .6 billion on August 1, surpassing the previous record of .36 billion in February.

Given the increased bullish sentiment, funding rates prior to the crash were at unsustainable levels as the funding rate for Bitcoin was hovering around 0.0721%. Furthermore, the imbalance for ETH was even worse as the funding rate was at 0.21%. However, post sell off, funding rates have stabilized despite still indicating a bullish tilt.”

Bitcoin Price Eyes New 2020 High Once Bulls Break .8K Resistance, CoinTelegraph, Aug 6