Bitcoin Eyes $12K Price Hurdle as Dominance Rate Hits 28-Month High

The rise in bitcoin's dominance rate to the highest level in over two years indicates the price rise is sustainable.

The bull case would weaken if BTC closes today below $11,120, although that looks unlikely.

The leading cryptocurrency jumped above $11,120 at 00:45 UTC, violating the bearish lower-highs pattern created on July 20 and extended gains to $11,868 at 07:30 UTC. That's BTC's highest level since July 12, according to Bitstamp data.

With the price rise, BTC's dominance rate - the cryptocurrency's share of the total crypto market - has jumped to 67.9 percent, the highest level since April 12, 2017, according to CoinMarketCap.

Many observers consider price gains sustainable if they are backed by an uptick in the dominance rate.

With the dominance rate validating BTC's 9.5 percent price rise in the last 24 hours, further gains toward resistance at $12,030 look likely.

The bullish case would weaken if BTC prints a UTC close below $11,120 today, leaving a daily candle with a long upper wick in its wake - a sign of buyer exhaustion.

BTC picked up a bid around $10,980 at 00:00 UTC - an hour before CNH began falling against the dollar, as seen in the chart below.

The price action seems to have convinced the crypto market community that yuan's drop below the major psychological level of 7 per USD fueled a rally in BTC's price - that is, wealthy Chinese investors rotated money into BTC amid the yuan's depreciation.

Including prominent analyst Alex Kruger, wondered earlier today whether BTC had front-run the People's Bank of China's decision to allow the yuan to slide beyond 7 per USD. If that narrative continues to strengthen, then BTC may become vulnerable to a bounce, in yuan, if any.