KEY POINTS

  • A strong bounce from $8,900 and a strong correlation with the stock market are bullish indicators for Bitcoin
  • An analyst predicted breaking $10,500 will clear the way for Bitcoin to reach $12,000
  • Bitcoin is still not decoupling from the stock market, despite many who suggested otherwise

A strong bounce from $8,900 and a strong correlation with the stock market made an analyst predict that a push to $12,000 for Bitcoin is set to happen soon. 

Michaël van de Poppe, an analyst for Cointelegraph and a full-time trader from the Amsterdam Stock Exchange, said staying at the $9,500 will signal a push past $10,500, a year-long resistance for the world’s largest cryptocurrency. Breaking $10,500 will move Bitcoin forward to $12,000, which it last visited in August 2019.

Over the past 24 hours, Bitcoin is trading at the $9,400-$9,500 range.

In a separate interview with Forbes, Poppe stressed the importance of reclaiming the $9,300 area to sustain momentum. While the uptrend is still intact, it won’t be the case once Bitcoin drops below $8,600. Bitcoin did revisit $8,900 but bounced immediately. On Twitter, Poppe expected $9,200 to hold its ground, or else “we’ll test lower levels, maybe even mid $7ks,” he continued.

Analyst Josh Rager shared a similar sentiment. He thinks after breaking $9,550, $9,800 should be reclaimed first before moving past $10,000. “Until then, I personally feel like the downtrend can continue,” he said on Twitter.

For crypto analyst "Calmly", the charts suggested the rebound that happened is just a stop-run, indicating a target at the lower $9,000 region.

Bitcoin, however, continued to rally in relation to the stock market. The correlation began March 12, when global markets crashed ahead of the expected prolonged lockdown because of the pandemic. On June 11, a 5.6% drop on the Dow Jones Industrial Average was followed by a drop in Bitcoin price. Reports of new infrastructure investment boost from the Donald Trump administration and the subsequent behavior of the stock market and Bitcoin suggested the “decoupling” for crypto assets will not happen in the meantime.

If $10,000 is not realistic in the short-term, crypto analyst "Filbfilb" suggested looking at the $8,100 level in the next 6 months as a key support area. Writing for Cointelegraph, he mentioned while the vast majority of Bitcoin’s price history is at $9,700 and below, the higher volume nodes are “around the $8,800 and $8,000 levels.” He argued the yearly pivot resides at $8,100 and that level has always acted as an important support whenever Bitcoin tries breaking past $10,000.