Bitcoin attacked the 12,000 USD threshold and even broke it for a while, but later slid to 11,657 USD as of 06:30 a.m. ET. The cryptocurrency is gaining momentum since the beginning of the week due to the collapse in the global stocks. Although historically Bitcoin has relatively little interdependence with most asset classes, its price has recently moved opposite to Asian indexes. Asian stock markets fell on Monday after the Chinese yuan fell below the 7-yuan-for-the-dollar, which is a key psychological level for traders, which pushed the Bitcoin up crossing the important 12,000 USD threshold.
Many cryptocurrency experts and analysts were quick to suggest that Bitcoin’s rise in tandem with the fall in the yuan means it’s becoming a safe haven asset, despite its extreme volatility and no one being able to accurately predict what bitcoin will do next.
However, today the stocks markets are performing much better and the Bitcoin lost 3% on the 24-hour chart.
Bitcoin price was traded to a new monthly high at 12,333 USD and corrected lower sharply against the US Dollar. The price is currently climbing higher after it tested the key 11,200 USD support area. Currently, the cryptocurrency is climbing up, but a successful break above the 12,000 USD level is needed for a fresh rally. The next key resistances are near 12,200 USD and 12,350 USD. Conversely, if the price fails to surpass the 11,850 USD and 12,000 USD levels, there could be another decline. Immediate support is near the 11,500 USD level, but the main support is near the 11,200 USD level and the 100 hourly SMA.
Bitcoin price is clearly facing an uphill task near the 11,850 USD and 12,000 USD resistance levels.
Bitcoin, despite being the most widely-traded cryptocurrency with volumes into the billions of dollars every day, still struggles with wild price swings due to so-called market whales moving large volumes of bitcoin at above or below the current market value.
Meanwhile, there are a number of other triggers that could have pushed the bitcoin price higher over the short term.
Over the weekend, Litecoin, the fourth-largest cryptocurrency by market capitalization, halved its block reward for miners, reducing the number of Litecoin tokens miners receive from 25 to 12.5. These so-called halvening events have come to be seen as a positive for cryptocurrency prices as they put a squeeze on-demand, with Litecoin up some 300% over the first half of this year.
Bitcoin itself is due to undergo a halvening in May 2020, where the Bitcoin reward to miners will fall to 6.25, from 12.5 currently.
Crypto market recap
The cryptocurrency market is into the red on Wednesday. Bloomberg Galaxy Crypto Index, which monitors the performance of the basket of cryptocurrencies, declined by 0.2% today with most of the coin being down.
Ethereum is down by 3% to 226.93 USD. The price bounces back as long as there is no daily close below the 220 USD support area. Ethereum suffered seriously last month, as it was trading at nearly 320 USD about a month ago before the altcoin market tanked. Since last Wednesday, Ethereum has recovered slightly, with the price increasing 6% from 213 USD to around 226 USD. Price reached a high of 238 USD earlier in the week before a minor correction.
Ripple’s XRP is down by 3.4% to 0.3107 USD. The coin price is facing a lot of hurdles against the US Dollar, while bitcoin is holding important support. XRP price is likely to face a strong selling interest near the 0.3200 USD resistance area. The price is likely to face a lot of resistance near the 0.3180 USD and 0.3200 USD levels. A successful close above 0.3200 USD is needed for a fresh increase above 0.3220 USD in the near term.
Litecoin is down by 4.7% to 92.55 USD, being among the worst performers today.
Bitcoin Cash, EOS and Bitcoin SV are down by about 5% each.
Tezos is the only winner among the Top 20 cryptocurrencies today. It gained 5.3% to 1.47 USD.
The total cryptocurrency market value stays above 300 billion USD and today is 304.743 billion USD.