Bitcoin price renews the uptrend but bulls fail to contain the gains above $12,000.
BTC dominance in the market is falling mainly due to the stalling prices and the meteoric DeFi growth.
Bitcoin price has in the recent weeks temporarily paused the uptrend that has put it head-to-head with the precious metal, gold. Following the dive to the lowest price of the year in March ($3,800), the correlation between the two assets (BTC and gold) grew significantly.
On the other hand, the correlation between Bitcoin and the traditional market has in recent months dwindled. For instance, as Bitcoin stalls, the stock market in the US is recording massive gains mainly supported by a series of favoring political and economic developments.
Bitcoin tried to follow in the footsteps of Ethereum during the trading on Tuesday. This time, BTC rallied past the resistance at $11,800, briefly stepping above $12,000. Unfortunately, an immediate reversal saw it plunge to retest support at $11,800.
At the time of writing, Bitcoin is doddering at $11,909. Buyers have their eyes on $12,000. A move beyond this key zone is supposed to boost BTC above the next critical zone at $12,200. The uptrend still has potential but price actions would most likely be limited.
Looking at the RSI, BTC is bullish in the short term. The leg above $12,000 is possible within the Asian or European sessions. The same positive trend is supported by the MACD as it commences an upward momentum after finding a bearing from a dive before hitting the midline.
Most analysts predict that Bitcoin will close the year trading above $18,000. This means that bulls must ensure that they break above a formed rising wedge pattern resistance. Otherwise, a reversal, let’s say under $11,000 would kick start a free-fall to $10,000 in the coming weeks.
Bitcoin dominance currently stands at 56.7; the lowest point of the year. The fall has been caused by the stalling prices as well as the ballistic performance seen among selected altcoins, especially the DeFi projects like Yearn.finance.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org