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Bitcoin Price (BTCUSD) Encounters Resistance in its Path to $13,000

Bitcoin price (BTCUSD) is in the red today, a day after it reached the important resistance level of $12,436. The currency is down by almost 2% and is trading at $11,730. Other cryptocurrencies, too, are in the red, with Ethereum price falling by more than 5% while Ripple price is down by 8%.

Why Bitcoin price is falling today

If you recall, hackers stole 129,900 Bitcoins from Bitfinex in 2016. At the time, these coins were worth more than $72 million. Today, this stash would be worth in excess of more than $1.2 billion. Since then, the hackers have been moving some of these funds in different wallets in their bid to stay anonymous.

According to Decrypt, the hackers moved 473.3 of these Bitcoins to several wallets in their bid to avoid detection in a process known as chain hopping. In June this year, the hackers moved $4 million worth of coins to unknown wallets and last year, they moved about 300 Bitcoins to these wallets.

Security is not the only reason why Bitcoin price is falling today. Another reason is the rising US dollar. The US dollar index, which measures the strength of the dollar against other currencies has risen by about 0.05%, a day after it fell to the lowest level in two years. In most times, Bitcoin price tends to fall when the dollar rises.

Surprisingly, BTCUSD is falling a day after the S&P 500 index rose to an all-time high. It has now effectively recovered all the losses in March, at the height of the coronavirus pandemic. Therefore, perhaps Bitcoin is falling as investors move to stocks.

Meanwhile, other risk assets are also in the red today. For example, gold and silver price has dropped by more than 1% and 2%, respectively. So, BTC is falling in sync with these other assets.

There are technical reasons why BTCUSD has fallen also.

BTCUSD technical outlook

The daily chart shows that Bitcoin price has been in a strong upward trend after bottoming in March. On Monday, the price rose to a high of $12,436. And yesterday, the price struggled to move above this price, indicating that it has found strong resistance. The price remains above the ascending black trendline and above the 50-day and 100-day exponential moving averages.

Therefore, I suspect that the BTCUSD will remain in this holding pattern and then breakout higher as bulls aim for the next level of $13,000. On the flip side, a move below the psychological level of $11,000 will invalidate this trend.

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Bitcoin Price Daily Chart

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