Imploding Trump Pelosi COVID-19 deal leads to 3% Bitcoin price drop

The price of Bitcoin dropped 3% in less than three hours as the U.S. stock market plummeted.

Following the pullback, most traders are neutral or slightly bearish on the short-term trend of BTC. Traders and on-chain analysts are now pinpointing $12,500 and $11,973 as the two levels to watch for the continuation of the Bitcoin rally.

Why $12.5K and $11.9K are crucial for the current Bitcoin rally.

The Bitcoin price dropped sharply on the day due to the confluence of major macro factors.

First, it is near the 10-day moving average on the daily chart of Bitcoin.

As long as BTC defends $12,500, the chances of a bullish uptrend remain high.

If Bitcoin can remain above $11,973 despite the swift pullback, then the short-term outlook remains particularly bright.

Researchers at Whalemap, which tracks the activity of Bitcoin whales, identified $11,973 as the level to uphold the uptrend.

"A support retest may strengthen the current BTC uptrend.

Even if BTC tests the low $12,500 support level, traders believe that this could make a healthier uptrend for BTC. The price of Bitcoin rose by 15% since Oct. 17 with barely any pullback, demonstrating strong momentum.