The Bitcoin price temporarily crossed the $12,000 mark for the second time in less than a fortnight but once again saw a swift retreat, dropping $500 in the process. Pundits say any sustained action above $12,000 could see the top-ranked cryptocurrency testing multi-year highs perhaps in pursuit of its $19,800 all-time high (ATH).
Market analysts say smart money will continue to flow into assets like Bitcoin (BTC) and gold as investors look to hedge against currency debasement. Both BTC and gold appear to be advancing along similar price action trajectories with the latter recently crossing $2,000 per ounce for the first time.
BTC Fills Futures Gap Causing Price Drop
The Bitcoin price has seen a slight 4% retrace after crossing $12,000 earlier on Monday (August 10, 2020). The drop means BTC filled the latest CME Bitcoin futures gap at $11,700.
Bitcoin has attempted to breach the $12,000 price mark twice over the last two weeks with both attempts seeing a minor correction.
The largest crypto by market capitalization is up 64% year-to-date (YTD) making BTC one of the best-performing assets in 2020. Despite a fall to $3,800 during the Black Thursday market sell-off, the Bitcoin price has recovered and may well be on its way to setting a new high above $12,000.
As of the time of writing, the Bitcoin price is on the uptrend, moving away from the $500 dip, looking to retest the $12,000 resistance level once again. Above $12,000, BTC will likely find the next resistance between the $12,900 and $13,000 price bands, a level not reached since mid-June 2019.
The Bitcoin price breaking above a multi-year resistance could put a definitive seal on the bull market argument for BTC. With the halving happening back in May, optimism has been brewing of Bitcoin marching to another all-time high as has been the case for all other previous block reward subsidy events.
Asian Capital Fight Propelling Bitcoin Price Rise
Tweeting on Monday, Bitcoin permabull Max Keiser identified rising economic and political tensions in Asia as a part of the propelling force for the rise in the Bitcoin price. According to Keiser” “Capital flight out of Asia is taking the Bitcoin express.”
The BTC proponent highlighted Bitcoin’s portability in contrast to gold as a major reason for its preference against the latter in moving wealth across geographical locations. Over the last few years, Bitcoin has become popular in cross-border transfer of funds for almost insignificant fees, with whales able to move hundreds of millions of dollars without having to utilize banks or other financial institutions.
With the U.S. and China increasingly escalating their economic tussle, wealthy Chinese may seek to move their fortunes out of the country to prevent any devaluation from currency debasement. Outside Asia, major economies like the U.S. and the European Union (EU) are set for fresh stimulus spending plans to trigger economic recovery.
Back in July, EU leaders approved a $2 trillion spending package while the U.S. Congress plans to move forward with another round of stimulus check payments to support out of work Americans. Market analysts say these actions will cause further currency devaluation that may propel haven assets like BTC to newer heights.