Bitcoin Price Prepares for $12,900 After Key Support Level Is Retested

• Despite today’s 4.4% Bitcoin price correction to retest underlying support, bulls are attempting a daily close above $12,000.

• The S&P 500 reached a new all-time intraday high, confirming the start of a new bull market according to analysts.

• Bitcoin’s trend of lower highs and support / resistance flips remains intact.

After a volatile day which saw Bitcoin (BTC) price drop to $11,820, the digital asset appears ready to secure a daily close above $12,000.

The mild 4.4% correction came after a 6-day run which saw BTC price gain 11.93% and the pullback allowed for a retest of an underlying support. Such corrective moves are healthy and customary after a support resistance flip occurs.

Cryptocurrency daily market performance snapshot. Source: Coin360

A positive to take away is the daily candle has yet to engulf the previous candle and the pattern of daily higher lows remains intact.

At the moment it seems bulls are attempting to the $12,100-$12,200 level to support, which if achieved, would set strong footing for Bitcoin to have a shot at the $12,900 level.

Interestingly, as Bitcoin price and the wider crypto market corrected, the S&P 500 secured a record intraday all-time high at 3,395.06 and effectively erased all of the losses from March when the coronavirus pandemic tightened its stranglehold on the U.S. economy.

According to CNBC analysts, today’s strong close “confirms the start of a new bull market” in stocks.

Meanwhile, gold and silver also recorded slight losses but both assets remain near record multi-year highs after strongly bouncing back from last week’s sharper correction.

The steady rally in gold and silver suggests that even though stocks may have resumed their trend of notching new all-time highs, investors remain cautious and somewhat skeptical about the future of the U.S. and global economy.

Bitcoin daily price chart. Source: Coin360

Unsurprisingly, altcoins took a hefty beating and Bitcoin price dropped to $11,820.

At the height of the correction Chainlink (LINK) price dropped by 17.29% and at the time of writing the altcoin is 18.94% away from it’s all-time high.

Ether (ETH) price also took a knock, pulling back to $412.28 before bouncing off support to trade at $425. EOS, another strong mover as of late, also corrected by 9.13% but the altcoin has since recovered and currently trades for $3.62.

According to CoinMarketCap, the overall cryptocurrency market cap now stands at $377.5 billion and Bitcoin’s dominance index is currently at 59%.

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