- Bitcoin looks set to test falling channel resistance at $12,030, having invalidated a bearish lower-highs pattern earlier today.
- The rise in bitcoin’s dominance rate to the highest level in over two years indicates the price rise is sustainable.
- A UTC close above $12,030 would confirm the falling channel breakout and allow a rally to $13,880 (June 26 high).
- The bull case would weaken if BTC closes today (UTC) below $11,120, although that looks unlikely.
Bitcoin (BTC) is eyeing a move to key resistance above $12,000, having broken out of a bearish pattern in the Asian trading hours today.
The leading cryptocurrency jumped above $11,120 at 00:45 UTC, violating the bearish lower-highs pattern created on July 20 and extended gains to $11,868 at 07:30 UTC. That’s BTC’s highest level since July 12, according to Bitstamp data.
With the price rise, BTC’s dominance rate – the cryptocurrency’s share of the total crypto market – has jumped to 67.9 percent, the highest level since April 12, 2017, according to CoinMarketCap.
Many observers consider price gains sustainable if they are backed by an uptick in the dominance rate.
For instance, Vinny Lingham, co-founder & CEO of identity protection and management startup Civic, put out a series of tweets on April 10, explaining how alternative cryptocurrencies decoupling from the BTC rally would be a sign of substance in the bull run.
With the dominance rate validating BTC’s 9.5 percent price rise in the last 24 hours, further gains toward resistance at $12,030 look likely. Technical indicators are also signaling a continuation of the price rise.