The price of Bitcoin (BTC) has reached $12,000 again, and traders seem increasingly convinced that the digital asset will be able to protect the fundamental level this time.

During the course of 2020, BTC visited the $12,000 area four times (all after August 2), but turning this decisive resistance level into support proved to be a huge challenge.

There are three factors behind the bullish outlook for Bitcoin in the short and medium term. Potential catalysts are the fall of the US dollar, the strength of support at $10,000 and the considerable increase of Ether (ETH).

A confluence of factors supports Bitcoin’s uptrend

According to cryptocurrency trader Scott Melker, the U.S. dollar is losing its momentum, as evidenced by the currency’s downward rupture from a 10-year channel, followed by a clear rejection. Commenting on the chart, Melker explained:

„The dollar seems dead, as I have been saying for months. Last week there was a strange euphoria about its possible recovery. Now the breakage of the channel valid for ten years is clear. At some point it should bounce back to test it again, but there is nothing bullish. It is good for BTC.“

Many analysts interpret the weakness of the dollar as a positive factor for Bitcoin, as alternative value reserves are valued in fiat currency. In the last months, the dollar has decreased considerably compared to other reserve currencies. As it happens, gold and Bitcoin have marked strong gains since April.

The strength of the $10,000 support level increases the chances of further growth for the cryptocurrency, and it is important to note that we are in the longest period that Bitcoin has been above $10,000 since the 2017 bull run, when the asset reached its all-time high.

Eric Thies, technical analyst in the crypto market, suggested that Bitcoin may never go below $10,000 again:

„We may never see #Bitcoin under $10,000 again. Even altcoins will skyrocket. Have you managed to accumulate as much as possible?…. Or did you miss an incredible investment because of the negativity and skepticism of the bear market?“

Based on the recent Bitcoin price trend, Cryptowatch analysts predict that the crypto asset will reach several historical highs by November:

„Bitcoin is perfectly in line with PlanB’s Stock to Flow (S2F) model. Assuming a 10% loss of coins, BTC forecasts see new all-time highs in mid-November, and about $27,000 by the end of the year.