Bitcoin Price Above $11.5K as Key BTC Price Metric Suggests $12K Retest

Today Bitcoin price rebounded from its recent low at $11,125 on Aug 11 to $11,617.

Reasons traders are still bullish on BitcoinHistorically, the price of Bitcoin has moved toward areas that have the most liquidity and whales tend to target areas with a cluster of buy or sell orders to find sufficient liquidity.

If Bitcoin is overly shorted, it is vulnerable to a short squeeze because whales are likely to target the liquidation prices of shorts.

Many traders seemingly shorted Bitcoin on the way down, causing short liquidation prices to be present at around $12,000.

Bitcoin liquidation levels on the low time frame chart of Bitcoin.

Another popular crypto trader on Twitter known as "Redxbt," said the Bitcoin recovery "Might still have legs." It appears he is referring to Bitcoin's break out of the $11,550 resistance level as indication that the uptrend will continue.

The Bitcoin Hash Ribbon indicator lit up for the first time since it signaled a rally when BTC was hovering at $9,500.

"The Bitcoin Hash Ribbon indicator can be used to identify market bottoms due to miner capitulation. It last indicated a buy signal when BTC was around $9,500, which is up over 20% since then."

In the medium to long-term, the strong performances from altcoins could catalyze a strong Bitcoin rally.

Previous price cycles show that a substantial altcoin market rally is typically followed by a profit-taking rally where the proceeds flow into Bitcoin and Ether.