The price of Bitcoin (BTC) rose on August 5 from $ 11,090 to $ 11,784 before briefly returning to the $ 11,650 area as the daily close approached. Currently, the price is trading near the $ 11,500 support after the bulls were unable to tackle the $ 11,800 level.
Despite pulling back to lower support, Wednesday’s 6.29% push through the $ 11,100 to $ 11,250 area was much needed as price had remained below that level for about 3 days.
4 hour BTC / USD chart. Source: TradingView
As the 4-hour chart shows, once above $ 11,450 traders were able to cut the $ 150 gap on the visible range of the volume profile and continue to complete a reversal pattern of the bottom W, but not drilling $ 11,800 prevented it.
As reported by Cointelegraph earlier this week, the August 2 flash crash, which saw the price of Bitcoin drop $ 1,500 in minutes and sell off $ 1 billion, did not shake the bullish resolve of professional traders.
According to GSR market analyst Micah Erstling:
“The large percentage of traditional stocks and investors looking for higher yielding assets has led to a bigger shift to crypto. As a result, open interest in futures contracts listed on major stock exchanges hit a new lifetime high of $ 5.6 billion on August 1, surpassing the previous record of $ 5.36 billion in February.
Given the heightened bullish sentiment, pre-crash funding rates were at unsustainable levels, with Bitcoin’s funding rate hovering around 0.0721%. In addition, the ETH imbalance was even worse since the funding rate was 0.21%. However, after the sale, funding rates stabilized despite the indication of an upward tilt. “
Bitcoin daily price chart. Source: Coin360
Altcoins also saw noticeable gains, with Bitcoin spending a few days consolidating and some double-digit gains managed as the price of BTC hit $ 11,750.
Bancor (BNT) rose 26.50%, Zcash (ZEC) gained 7.99% and band protocol (BAND) surged with a gain of 39.53%.
According to CoinMarketCap, the overall cryptocurrency market capitalization now stands at $ 351.5 billion. Bitcoin’s dominance index is currently 61%.
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