Bitcoin is currently flirting with the psychological threshold of $12,000 and is now in a critical area that will determine its immediate future.
After a dull, mostly stable August in which Bitcoin reported gains under 4%, the largest cryptocurrency by market cap has shot up to start September.
The token’s price managed to rise more than $350 after a small fall of about $50 yesterday. Bullish sentiment only came to a halt after BTC briefly went over the $12,000 mark.
Looking at the bigger picture, Bitcoin is on a bullish run, with monthly candles pointing to a steady recovery from the 2019 crash, when Bitcoin went from nearly $14,000 that June to just under $6,500 in December.
By contrast, the start of 2020 was looking quite bullish until the coronavirus took a sledgehammer to most markets. In March, Bitcoin experienced one of the steepest crashes since its 2018 correction.
That fall didn’t last long. By April, Bitcoin was breaking expectations, separating itself from the stock market. Its behavior began resembling another hedge asset, gold.
The performance of Bitcoin to start this month reinforces the stock-to-flow price prediction model, which posited that the price of Bitcoin would rise after the Bitcoin halving. So far, what many call “coincidence” is happening again: The model seems to be acting “like clockwork.”