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Bitcoin transforms into Dracula, the vampire altcoin, breaking through the $12,000 mark!

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Bitcoin transforms into Dracula, the vampire altcoin, breaking through the $12,000 mark!

The price of Bitcoin broke through the $12,000 mark today, marking the third time in 2020 that it has reached this price level. After draining value from other altcoins, can it continue to surge?

Breaking the $12,000 Barrier

Bitcoin is currently in a strong upward trend, continuously setting new records of "daily closing price above $10,000" every day. As of the deadline, Bitcoin has been above $10,000 for 83 consecutive days, breaking the previous record of 62 days set between December 2017 and January 2018.

From a technical analysis perspective, the breakthrough of $12,000 for Bitcoin is a significant step, as Bitcoin has attempted to challenge this level multiple times in the past without success, indicating strong resistance at this price level. Bitcoin analyst at Quantum Economics, Jason Deane, mentioned in an interview that:

"I believe that a rapid and strong breakthrough above this level will establish strong price support for further price increases."

Record Number of Holders

In fact, Bitcoin recently broke another record. According to data from Glassnode, the number of addresses holding more than 0.1 Bitcoin reached a historical high, and the number of addresses holding more than 100 Bitcoins also hit a six-month high.

As of October 19th, Glassnode data shows a total of 16,159 Bitcoin addresses holding over 100 Bitcoins, surpassing the previous high of 16,158 on June 8th.

Similarly, as of October 19th, the number of addresses holding at least 0.1 Bitcoin is higher than ever before. 3.16 million addresses hold at least 0.1 Bitcoin, surpassing the previous record of 3.15 million addresses.

Rare Bitcoin Bloodsucking Phenomenon

However, the most peculiar situation in the market recently is the phenomenon of "Bitcoin Bloodsucking," where altcoins like Ethereum (ETH) did not rise along with Bitcoin but instead experienced a prolonged period of decline.

This could be due to a long consolidation period or the cooling off of the decentralized finance (DeFi) craze, causing funds to flow back from altcoins to Bitcoin. According to Kelvin Koh, partner at Spartan Group, if this trend continues and with a significant amount of capital waiting on the sidelines, Bitcoin's price could further rise to the $14,000 to $15,000 range.

"Funds are flowing back from altcoins to Bitcoin. This bloodsucking phenomenon is ongoing and will bring good momentum to Bitcoin in the short term, potentially pushing it to $14-15K."

On the other hand, Kelvin Koh also pointed out that DeFi tokens are oversold in this process, presenting a good opportunity for long-term holders to enter the market.

Bullish Fundamentals and Futures Market

Mohit Sorout, partner at Bitazu Capital, also pointed out that even though Bitcoin effortlessly surpassed the $12,000 mark, the funding rate in the Bitcoin futures market remains neutral to negative, indicating that Bitcoin still has significant upward momentum.

"With Bitcoin breaking $12,000 and having such strong fundamentals and a neutral funding rate, a massive rally seems only a matter of time."

However, it is important to note that while the upward trend of Bitcoin remains strong, there is a divergence in the market on whether it will continue to rise without a pullback. Some traders and investors believe that after breaking the key resistance level of $12,000, Bitcoin is unstoppable. However, others think that the previous high of $12,500 remains a valid resistance level, so a correction in this range is likely.