Cointelegraph Team
Cointelegraph
$12,000 is firmly back on the cards as daily gains top 2.2% and Bitcoin erases the effect of its weekend plunge.
Bitcoin (BTC) saw fresh gains on Aug. 6 as bulls refused to rest and the price steamed toward $12,000.
Cryptocurrency market daily snapshot Aug. 6. Source: Coin360
BTC price recovers $1,200 crash losses
Data from Coin360 and Cointelegraph Markets showed BTC/USD tackling $11,900 on Thursday, with 24-hour gains at 2.2%.
With barely any let-up, Bitcoin has recovered almost all its lost ground over the course of this week, just four days after it shed $1,200 in minutes after initially passing the $12,000 mark.
With its latest move, the largest cryptocurrency thus beat out resistance earmarked by analysts as the next hurdle for bulls.
“Essentially new resistance hit here after breaking $11,300-11,400,” Michaël van de Poppe reported on Twitter earlier on Thursday.
Let's see how it goes from here.
BTC/USD 1-day chart. Source: Coin360
All eyes will be on the ability for bulls to flip the precarious $12,000 level into solid support, something which nonetheless came easily for $11,000 once resistance at $10,500 was broken.
Bitcoin realized correlation with gold hits all-time high
Bitcoin “copying” gold to hit surprise price highs now has factual evidence as the realized correlation between the two assets reaches all-time highs.
Data from on-chain monitoring resource Skew confirmed the trend this week, with one-month realized correlation between gold and Bitcoin now at 67.1%.
The transformation has been impressive — just three weeks ago on July 20, a local low saw realized correlation hit -0.1%.
Bitcoin Vs. Gold realized correlation 2-year chart. Source: Skew
The intervening period has been marked by Bitcoin’s rapid gains in USD terms, following in gold’s footsteps several months after the precious metal began its own conspicuous climb.
At press time on Thursday, XAU/USD was at $2,065, its highest ever against the dollar, passing $2,000 despite analysts predicting the likelihood of such an event being just 30% this year.
Meanwhile, doubts are surfacing over Bitcoin’s continued correlation with stock markets. BTC was 95% correlated with the S&P 500, for example, but on Thursday, one analyst declared the relationship to be over.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Solana, Base and AI meme coins rally, are speculative tokens making a comeback?
Meme coins are typically considered more speculative than the rest of cryptocurrency categories. Despite the label, hedge funds and institutional investors have warmed up to meme coins this cycle.
RWA narrative could make a comeback after nearly 50% correction in CFG, ONDO, MKR
Bitcoin halving and developments in the AI sector are the key narratives this cycle. The Real World Asset (RWA) tokenization narrative gathered steam with BlackRock’s tokenized asset fund launch on Ethereum in March 2024.
These cryptocurrencies could face selling pressure according to an analyst: STRK, ENA, OMNI, JUP, ONDO
Thor Hartvigsen, investor at Heartcore Capital and a crypto analyst has identified a list of cryptocurrencies that are expected to see a massive increase in their supply. Typically, an increase in selling pressure negatively impacts an asset’s price.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.