$12,000 is Bitcoin’s “Last Great Resistance,” So, Enjoy the Ride & Buy the Dips


Bitcoin has recorded just 61.5% gains in 2020 so far, but still, it is the best investment.

In comparison to Bitcoin’s double-digit gains, the S&P 500, which briefly hit a new ATH last week, has only seen 4.40% returns YTD and US Dollar 2.90%. Meanwhile, WTI had double-digit gains return of 32% but in the negative (losses).

The traditional safe-haven asset, gold, came close to bitcoin but remains far off, with nearly 28% gains after hitting a new peak at $2,085.

So, after being the best investment of the last decade, it won’t be a surprise if it continues on that path still.

Already we are at the beginning of a bull run that will see BTC hitting new highs.

For instance, at its current price, 95% of Bitcoin UTXOs are in profit, and above this level are “characteristic of bull runs.”

Moving Ahead

Currently, “the unspent whale clusters confirm a great battle taking place,” says analyst David Puell who shares the long road since 2017 top.

Here two actors are at play, “top buyers at 12k-14k reaching their breakeven price, and current buyers active after the first higher high in over a year.”

map-of-unspent-bitcoins

At this point, if we even get a correction, which would be no surprise as bitcoin has had many retracements on its journey to new ATH in the previous cycle as well, “it will most likely result in another major cluster of re-accumulation at the 10k area.”

And “if we breakout, well, fuck… enjoy the ride,” said Puell.

The $12k Level

The last year and a half resulted in some of the “most interesting market structures in any Bitcoin cycle.” During this time, the leading digital asset made several attempts at a “typical” bullish trend with a strong halving narrative.

But the market was hit by two swans, one after the other. The first one was the $3 billion Chinese PlusToken scheme, whose all perpetrators got caught by the police recently, ending the selling pressure finally.

The second swan event was COVID-19 pandemic that saw BTC crashing to $3,800 on most of the exchanges and $3,600 on BitMEX. Since then, the digital asset has recovered beautifully, up over 210%.

According to MPL, moving profits and showing the profits and losses of bitcoin transactions in a given day, both 2019 and 2020 have been atypical and chaotic years, and “major crossover events of such frequency are unprecedented in over 10 years.”

The change in holdings (CHI) indicator that allows a user to choose a period in bitcoin’s price and visualize the net change in BTC holdings in that period points out $12,000 as the last great resistance which is top buyers’ breakeven zone.

btc change in holdings

As we have been seeing for over a fortnight now, the digital asset has been working hard on breaking out of this level. Since the beginning of this month, BTC's price has jumped above this level twice, only to come crashing back down.

However, CME bitcoin futures are already above $12k along with September contracts on other exchanges. So, it won’t be long when we hit this level and then move onto new highs.

Bitcoin (BTC) Live Price

1 BTC/USD =$62,269.4942 change ~ 1.12%

Coin Market Cap

$1.16 Trillion

24 Hour Volume

$34.23 Billion

24 Hour VWAP

$61.49 K

24 Hour Change

$694.78

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