The Bitcoin (BTC) price perked up on Aug. 5, rallying from $11,090 to $11,784 before briefly retracing to the $11,650 area as the daily close approached. Currently, the price trades near the $11,500 support after bulls were unable to tackle the $11,800 level.
Despite a pullback to lower support, Wednesday’s 6.29% push through the $11,100 to $11,250 zone was much needed, as the price had lingered below this level for about three days.
BTC/USD 4-hour chart. Source: TradingView
As the 4-hour chart shows, once above $11,450, traders were able to slice through the $150 gap on the volume profile visible range and pursue the completion of a W-bottom reversal pattern; however, failure to pierce $11,800 prevented this.
As reported by Cointelegraph earlier this week, the Aug. 2 flash crash that saw the Bitcoin price drop $1,500 in minutes and liquidate $1 billion did little to shake the bullish resolve of professional traders.
According to GSR market analyst Micah Erstling:
“The large percentage of headlines and traditional investors looking for higher yielding assets has led to a larger shift into crypto. As a result, open interest in futures listed on major exchanges reached a new lifetime high of $5.6 billion on August 1, surpassing the previous record of $5.36 billion in February.
Given the increased bullish sentiment, funding rates prior to the crash were at unsustainable levels as the funding rate for Bitcoin was hovering around 0.0721%. Furthermore, the imbalance for ETH was even worse as the funding rate was at 0.21%. However, post sell off, funding rates have stabilized despite still indicating a bullish tilt.”
Bitcoin daily price chart. Source: Coin360
Altcoins also notched notable gains as Bitcoin spent a few days consolidating, a few managing double-digit gains as BTC price broke out to $11,750.