Market Analysis

Bitcoin price rally to $12K is meaningless until bulls flip it to support

On Tuesday Bitcoin (BTC) bulls mustered enough strength to push BTC price slightly above the $12K mark, a level not seen since Sept. 1. 

Cryptocurrency daily market performance snapshot. Source: Coin360

The move occurred after Monday’s (Oct. 19) high volume surge to $11,822 was followed by continued buying into Tuesday, providing enough momentum for bulls to push above the ascending channel to $12,038.

BTC futures volume by exchange. Source: Digital Assets Data

The rally to $12K was also accompanied by soaring volumes across the top Bitcoin futures exchanges on Monday through Tuesday, and earlier this week Cointelegraph reported that the most recent CME commitment of traders report shows institutional longs reached a record-high.

At the start of the week traditional markets took a hit as investors feared a stalemate between Democrats and Republican lawmakers in Congress would prevent the passing of a second round of economic stimulus aimed at alleviating the financial pressure placed on small businesses and Americans in need of a second stimulus check.

Fortunately, by  today’s market closure the Dow, S&P 500 and Nasdaq wrapped the day up with marginal gains.

Notably, the Dow closed 100 points higher after U.S. House Speaker, Nancy Pelosi said she felt “optomistic” about a deal being struck between the Congress and the White House.