Breakout or fakeout? Top traders react to Bitcoin price rally to $11.9K

Within the past few hours, Bitcoin price rose to $11,988 before pulling back to hover around the $11,900 level.

The general sentiment around Bitcoin among analysts and traders remains positive and multiple on-chain analysts say that Bitcoin has been behaving like a safe-haven asset.

Technical analysis suggests that first the $12,000 resistance level needs to be flipped to support and previous price action around this level suggests that it will be hard for BTC to surpass it cleanly in its first retest.

On-chain analyst, Willy Woo, has consistently been positive about the current Bitcoin price cycle.

"The decoupling is upon us :) Makes sense that BTC will continue to be correlated in short timeframe trading; but not in the longer timeframes. BTC is a safe haven, just that 'risk-on' is skewing this fact."

While the fundamentals remain optimistic for Bitcoin, technical analysts and traders are wary about BTC at $12,000.

Historically, the $12,000 level has acted as a strong resistance area for BTC. A pseudonymous trader known as "Salsa Tekila" said that he remains careful as Bitcoin pulls closer to the $12,000 level.

What's next for BTC? Traders are pointing to the spot market as the primary driver of today's bullish move.

The futures market is cautious but spot traders are continuing to accumulate BTC. Derivatives trader Cantering Clark noted that there is not much buyer demand in the futures market.

If Bitcoin cleanly breaks $12,000, traders believe the momentum would lead to the formation of a new uptrend.