Bitcoin stumbles towards $12,000

Uncertainty as to whether crypto will be able to withstand slew of sell orders at $12,000

Bitcoin stood just on the precipice of $12,000 on Tuesday afternoon, having added more than $460 since the start of the week.

The world’s leading cryptocurrency has broken the threshold only once in 2020, for almost three days in mid-August.

In the wake of the tech correction at the end of the summer and the cooling of the DeFi boom, Bitcoin fell to a range between around $10,000 and $11,000 throughout September of for much of October.  

Having enjoyed steady gains in the week previous, BTC rose by 4 per cent between Monday morning and Tuesday afternoon.

While many will welcome this upwards trajectory and hope Bitcoin can rally to a new 2020 all-time high, others may well point to the slew of large sell orders positioned around $12,000 as cause for caution.

More bullish traders could well point to recent Skew data which found open interest in Bitcoin futures listed on the Chicago Mercantile Exchange rose by 20 per cent on Monday to a nearly two-month high. This metric has increasingly been treated as an ersatz gauge of institutional investor attitude to the crypto.

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Further strengthening belief of an imminent rally could also be the fact that Bitcoin has now enjoyed its third month above $10,000, its longest-period above that benchmark on record. With such strong foundations BTC could possibly break $12,000.

Alternatively, as the crypto repeatedly rejected the threshold throughout August, October could simply see a repeat.

Bitcoin traded up 2.2 per cent by late-afternoon at $11,986.50.

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