Bitcoin price braces for $ 12,900 after key support level retest

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  • Despite the Bitcoin price correction of 4.4% today to retest underlying support, the bulls are attempting a daily close above $ 12,000.

  • The S&P 500 hit a new intraday high, confirming the start of a new bull market according to analysts.

  • Bitcoin’s trend of falling highs and support / resistance reversals remains intact.

After a volatile day that saw the price of Bitcoin (BTC) drop to $ 11,820, the digital asset looks set to secure a daily close above $ 12,000.

The slight correction of 4.4% came after a 6-day run that saw the price of BTC gain 11.93% and the pullback allowed for a retest of underlying support. These corrective moves are healthy and habitual after a supportive resistance reversal.

Overview of the daily performance of the cryptocurrency market. Source: Coin360

One positive point to remember is that the daily candle has not yet engulfed the previous candle and the daily lows pattern remains intact.

For now, it looks like the bulls are trying to support the $ 12,100 to $ 12,200 level which, if reached, would set a solid foundation for Bitcoin to have a chance at the $ 12,900 level.

Interestingly, as the price of Bitcoin and the crypto market as a whole corrected, the S&P 500 hit an all-time high at 3,395.06 and effectively wiped out all of March’s losses when the coronavirus pandemic hit. tightened its grip on the US economy.

According to CNBC analysts, today’s strong close “confirms the start of a new bull market” for stocks.

Meanwhile, gold and silver also posted slight losses, but both assets remain close to their multi-year highs after rebounding sharply from the steeper correction last week.

The steady rally in gold and silver suggests that while stocks have resumed their trend to new all-time highs, investors remain cautious and somewhat skeptical about the future of the US and global economy.

Bitcoin daily price chart.  Source: Coin360

Bitcoin daily price chart. Source: Coin360

Unsurprisingly, altcoins were beaten hard and the price of Bitcoin fell to $ 11,820.

At the height of the correction, the price of Chainlink (LINK) has fallen 17.29% and at the time of writing, altcoin is at 18.94% of its all-time high.

The price of Ether (ETH) also took a hit, falling back to $ 412.28 before bouncing off support to trade at $ 425. EOS, another strong driver in recent times, has also corrected 9.13%, but altcoin has since recovered and is currently trading at $ 3.62.

According to CoinMarketCap, the overall cryptocurrency market capitalization now stands at $ 377.5 billion and the Bitcoin Dominance Index is currently 59%.

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