Is Bitcoin Taking a Break Before $12K?

Following yesterday’s surge to about $11,500, Bitcoin has retraced slightly and trades at about $11,350. Most altcoins have also calmed after charting two consecutive days of gains.

Bitcoin Steady Above $11K

As reported yesterday, the primary cryptocurrency initiated an impressive leg up. Bitcoin went from about $10,900 to its new monthly high of nearly $11,500 with just a few hourly candles.

After registering such notable gains in a relatively short period, BTC has retraced slightly and calmed. The asset currently sits at about $11,350.

From a technical perspective, Bitcoin now faces the first resistance at around $11,400 – $11,500. Should the cryptocurrency overcomes it, BTC could head towards $11,800, followed by $12,000.

In case of a price breakdown, Bitcoin could rely on the support lines at $11,200, $11,000, and $10,800.

BTCUSD. Source: TradingView

Despite the price increase, though, the data analytics company Santiment warns that the community could be expecting a retrace soon. The keyword “short” has hit a 2-month high on the social media discourse channels Santiment follows, which has “historically been a great identifier of market polarization.”

Short Vs. Long Crypto Social Media Presence. Source: Santiment
Short Vs. Long Crypto Social Media Presence. Source: Santiment

Altcoins Slightly Retrace

The past two days were rather impressive for the alternative coins, and the entire crypto market cap gained about $30 billion. The situation has calmed on a 24-hour scale with some red charted among most altcoins.

Ethereum, Ripple, and Bitcoin Cash have retraced by about 1%. ETH trades at $372, XRP – $0.255, and BCH has dipped below $240.

Binance Coin and Chainlink have lost 3% since yesterday to $28 and $10.4, respectively. Polkadot is the most substantial loser from the top 10 after a 4.2% decline. Nevertheless, DOT still trades above $4.

Cryptocurrency Market Overview. Source: quantifycrypto
Cryptocurrency Market Overview. Source: quantifycrypto

Further losses are evident from lower and mid-cap altcoins. Yearn.Finance has lost 16% of value. UMA (-14%), Celo (-9%), Kusama (-9%), Augur (-6.5%), and Swipe (-6.5%) are next.

It’s worth noting that several coins have doubled-down on their recent gains. Ren has jumped by another 17% to $0.33. Arweave (10%), Storj (7%), Cosmos (7%), and Uniswap (6) follow.

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Cryptocurrency charts by TradingView.