If Bitcoin Consolidates Around $12,000, Expect a Much Bigger Rally: CEO

Sunday 8 August 2020, 8:41 PM AEST - 3 days ago

It hasnt been the best past few hours for Bitcoin bulls. The leading cryptocurrency took a $1,500 price drop in the span of about five minutes, liquidating hundreds of millions worth of long positions as buyers were overextended.

Bitcoin has since bounced back to $11,300, yet the rejection at $12,000 is still clear as day.

For BTC to continue higher, an industry executive thinks BTC must retake and hold the $12,000 region. He made the same comment in May 2019, which was before BTC also consolidated under $12,000 before exploding to $14,000.

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Bitcoin Must Retake and Hold $12,000 Region

Vinny Lingham, the chief executive of cryptocurrency startup Civic, said $12,000 is pivotal for Bitcoin moving forward. Prior to the dump, the industry executive argued that Bitcoin needs to consolidate around $12,000 to confirm the ongoing uptrend:

It was a good call last time. This time its likely that Bitcoin holds $12k and consolidates around that level while capital moves into alt coins to test those waters. If $12k holds for a 3-5 days, then we can expect the next phase to be a buildup for a much bigger run…

It was a good call last time. This time its likely that Bitcoin holds $12k and consolidates around that level while capital moves into alt coins to test those waters. If $12k holds for a 3-5 days, then we can expect the next phase to be a buildup for a much bigger run… https://t.co/wQDUnp4rAZ

— Vinny Lingham (@VinnyLingham) August 2, 2020

For context, $12,000 has been a level of macro importance for Bitcoin.

Below is a chart of BTCs price action over the past three years, since the middle of 2017. As can be seen, multiple candles bounced off of and were rejected almost exactly at $12,000, showing it is a level traders consider to be technically significant.

Chart of BTC's price action over the past three years with a white line at $12,000 from Tr ...

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