After recovering 6.3% from a drop to $ 11,200 on August 11, the price of Bitcoin (BTC) appears to be rising for the third time to the $ 12K mark.
This comes after a week of bullish news that included investment firm listed on Nasdaq MicroStrategy buying 21,454 BTC as protection against the weakening US dollar, Coinbase exchange offering Bitcoin-backed loans, and the revelation that BlackRock and Vanguard are the main holders of MicroStrategy stock.
Cryptocurrency market daily performance picture. Source: Coin360
The growing bullish sentiment pervades the entire crypto sector and proof of this comes from alcoins like Tezos (XTZ) and Chainlink (LINK) that surpass previous all-time levels and a handful of tokens associated with DeFi after the lawsuit.
Index of fear and greed. Source: Alternativa.me
The Crypto Fear & Greed Index currently shows that sentiment among investors is high as the indicator reads ‘Extreme Greed’. This is a sharp contrast from July when the indicator read “Fear” and crypto investors feared that the price of Bitcoin would fall back to the low $ 10K range.
The daily timeframe indicates that Bitcoin continues to make higher cuts as the price consolidates in a narrower range between $ 11,200 – $ 11,800. In a recent customer newsletter, market intelligence firm Stack Funds said:
“A $ 12,000 level recovery is in sight as the formation of a bull flag crystallizes. Stack believes the current market structure will continue to remain intact unless the $ 10,500 level is violated. Given the current economic background “As the dollar weakens, we must continue to see a strong bullish momentum moving forward for Bitcoin.”
The firm also showed the growing link of Bitcoin with gold, noting that the BTC price corrected 2.7% while gold retreated by 9% earlier this week.
According to researchers, a unique feature of Bitcoin is that the asset is somewhat protected from market volatility, as its correlation between gold and stocks shifts depending on price action with each market. Stacks funds said:
“Despite recent links in the BTC-Gold correlation that hit the highest levels in March, the record drop in gold this week has not significantly affected the price of Bitcoin, as the digital asset catches up again in equity relations to maintain its trajectory. of rising prices. “
Bitcoin daily price chart. Source: Coin360
Altcoin also recovered well from the August 11 correction and Ether (ETH) made the waves manage a strong break above the $ 400 resistance level. Ether price increased by 7.88% to a new 2020 price of $ 430 and XRP price increased by 4.04%.
Chainlink (LINK) also reached a new all-time high after raising 16% to $ 18.37.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $ 367.4 billion. Bitcoin’s dominance index is currently 59%.