Bitcoin bulls are back after weeks of consolidation. The leading cryptocurrency thrust higher towards $12,000 on Tuesday morning. The coin now trades just shy of that crucial price resistance at $11,970.
The cryptocurrency is expected to move higher in the days ahead as macro trends favor Bitcoin bulls.
Bitcoin’s rally comes as altcoins have suffered a retracement, with most dropping a few percent across the board as a weird market dynamic emerges where altcoins seriously underperform BTC.
Bitcoin Surges to $12,000
Bitcoin is poised to tap $12,000 as bulls renewed their buying pressure heading into Tuesday morning. The cryptocurrency is currently up 2% in the past 24 hours, having traded as high as $11,800 yesterday.
Chart of bTC's price action voer the past few weeks. Source: BTCUSD from TradingView.com
Analysts think that Bitcoin’s recent price action is a precursor to a further move higher.
One trader noted that the open interest of BTC futures suggests that the coin is reaching a point to buy:
“Open Interest: the # of outstanding futures contracts that have not been settled. For each buyer there must be a seller. From the time the buyer/seller opens a contract until the counter-party closes it, that contract is considered open. Current levels look bullish.”
Altcoins are underperforming BTC by many percent during this move higher.
According to CoinGecko data, leading DeFi coins have plunged 5-20% in the past 24 hours. It seems as though capital from altcoins is cycling into Bitcoin en-masse, likely due to macroeconomic trends favoring BTC over altcoins.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Shoots Towards $12,000 as Capital Flows Back Into BTC