The RSI reflects a much more moderate picture, moving away from the overbought area. If Bitcoin can close the week above $ 19K, it will be possible to pre-give the victory to the bulls. If Bitcoin successfully passes the process of consolidation around interesting levels, in the near future we will see continued growth and the cherished overcoming of $ 20K.
Bitcoin emerges victorious in the fight for money space amid the coronavirus pandemic. BTC's resilience against the backdrop of global events has forced institutional investors and critics to reconsider their attitude towards it. Meanwhile, bitcoin has not yet been able to overcome the $ 20,000 level, and large investors continue to transfer their BTC reserves to exchanges. These and other factors speak in favor of reducing the value of the coin. A large-scale correction can create momentum for continued gains by connecting buyers in a downturn. By the end of 2021, we can see growth with potential up to $ 36,000 - $ 40,000.
In 2017, big business has yet to see the huge potential of Bitcoin, watching the global retail FOMO pushing Bitcoin's value to all-time highs without any major investment infrastructure. Now everything has changed places: the rally was created by institutions, and retail investors were just reaching for Bitcoin. The big difference is that large investors were able to crash the market in 2017, while retail investors are unlikely to be able to do so now, taking profits. And will they want to, against the backdrop of inspiration from growth? The current bullish pattern will be to make the majority of market participants believe that Bitcoin is imminent. It will not be difficult to do this, given the challenges facing the global economy and how quickly entire industries that enjoyed growth yesterday can depreciate.
Bitcoin has tried several times unsuccessfully to take the long-awaited psychological level of $ 20K. All attempts so far ended with profit taking and dropping the coin down. The main question that now worries all participants in the crypto market, what is happening now is the manifestation of the strongest resistance or consolidation before a new jump in quotations? A large-scale correction can create momentum for continued gains by connecting buyers in a downturn. Therefore, a number of investors do not pay attention to such turbulence. The current rally is led by large institutions, foundations and even the world's largest payment system PayPal, which integrates the largest cryptocurrencies into its service.
Bitcoin's rise to new highs comes amid a surge in activity on OTC platforms. According to The Block, Genesis trading company OTC volumes are 6 times higher than the 2017 record levels. Since then, there have been more financial institutions in the OTC market, which have become the driver of the current rally.
The significance of the new historical high cannot be underestimated. Many skeptics publicly rejected bitcoin because it could not reach its maximum, despite such favorable conditions in macroeconomics. This is another confirmation of the longevity of bitcoin.
The main cryptocurrencies continue to grow quite actively in price after Bitcoin exceeded its record in 2017 the day before. On Tuesday, this cryptocurrency is holding close to its earlier levels. The rise in the market is mainly due to the hopes of investors for an improvement in the situation in the global markets, which is associated with the success in the development of vaccines against coronavirus. The Thanos hard fork that took place over the weekend on the Ethereum Classic network was also a positive signal. Its goal is to improve the security of this cryptocurrency after a series of recent 51% attacks. As a result, the bitcoin rate per day increased by 5.5% - to $ 19,611 with a capitalization of $ 363.6 billion.
The likely catalyst for the XRP rally could be the activity of the developer Ripple Labs. In its third quarter 2020 report, it reported a $ 45.55 million acquisition of XRP as part of its buyback program to maintain healthy markets. Another potential reason for the XRP rally was the increase in the number of daily active addresses, according to analysts at Santiment. The new function for the execution of Ethereum smart contracts, available on the Ripple blockchain since November 18, could influence the mood of traders. We are talking about a solution called Hooks, the launch of which was announced by the main developer of the project Wits Wind.
Shortly before the beginning of the correction, the All Exchanges Inflow metric showed an increase in the placement of bitcoins on exchanges, which is direct evidence of the intentions of the whales to sell their assets. All of this promises increased turbulence in the near future. Altcoins have shown significantly more positive dynamics in recent years than Bitcoin, gaining hundreds of percent in a matter of days. Of course, now they are falling at a faster pace. During the day, there can be excellent entry opportunities for retail investors at a large discount. The main thing is to understand, is it time to be greedy?
There are currently signs in the bitcoin market that point to the possibility of a major correction, one of which is unhealthy retail investor interest in altcoins.
Apparently, the margin of safety for altcoin investors is now quite low, while an impressive correction in Bitcoin could provoke a collapse in the market altogether. However, you need to understand that if this happens, a large number of investors will rush to the crypto market, who missed the moment of entry at profitable levels, and digital currencies will receive an influx of demand similar to the situation in March.
As strong as the current demand for altcoins is, in the end it is Bitcoin that sets the initial tone for the market. If the benchmark cryptocurrency does not continue to grow or nevertheless enters a correction phase, this will trigger an equally tough sell-off for altcoins, which are still enjoying unprecedented growth in recent years.
Retail investors have not yet fully entered the market, unlike institutional investors, so the current situation looks more like 2016 than 2017. We will definitely see a break above $ 20,000 soon to set a new all-time high by the end of the year. As Bitcoin gains traction among more retail investors and established companies, it will be difficult to tell how high it will rise. Institutional investors have ramped up their investments in bitcoin compared to the third quarter. Institutions are increasingly looking at bitcoin as a long-term investment.
While the crypto market continues to show resilience, Bitcoin ignores overbought technical indicators, and buyers come to the coin's rescue every time the bears make another attempt to push BTC down, caution is advised. At the moment, Bitcoin may be undergoing a consolidation process near occupied levels, however, the inability to show continued growth in the short term may still result in a broad correction, which can now cover all altcoins that have risen so much in price in recent years.
Bitcoin has almost reached its all-time high, so retail investors may be paying particular attention to alternative cryptocurrencies that are historically far from their highs. Although the most famous and largest altcoin in terms of capitalization, Ethereum (ETH) rose 28% over the week, approaching $ 600, the coin is still very far from its $ 1,400 ceiling in mid-January 2018. For the most part, these are the levels that retail investors will be targeting.
Bitcoin is up 15% for the week, testing levels around $ 19,000 on Saturday. Ethereum (ETH) gained 23%, climbing above $ 570. Altcoins are sensitive to market movements and tend to go in the same direction as bitcoin, but more strongly. XRP and Bitcoin have different goals and are not competitors. In his opinion, Bitcoin is an excellent store of value, while XRP is more convenient for payments due to speed, transaction costs and scalability.
Miners' revenues on November 18 alone amounted to about $ 21 million, deVere Group publishes the results of surveys, where most of the large investors plan to buy leading cryptocurrencies. Deutsche Bank marks the rise in Bitcoin and the fall in gold, linking the two. Bitcoin's hashrate is actively pursuing past highs. Everything in general creates a sense of the possibility of continuing growth no matter what. Nevertheless, you should at least be careful, as sooner or later the market will begin the balancing process.
After the move, the miners turned on their ASICs and began to raise the significantly dropped BTC hash rate. The miners were clearly in a hurry to move, since the rising price of Bitcoin with a low level of complexity of the algorithm brings good profit. Glassnode reports that in just one day on November 18, miners earned more than $ 20 million. It is likely that most of these coins could go for sale, but so far we can see that even if this is the case, the demand from buyers still prevents Bitcoin from slipping into correction.
Of course, the main character of all recent news is Bitcoin. Society loves success stories. The main question that now torments investors of all levels: is it too late to invest in a reference cryptocurrency? Bitcoin can indeed continue to rise and surpass $ 20K. However, you need to be prepared for a correction before resuming growth. Thus, given the fact that the ideal moment to invest in March 2020 has been missed, investing can be recommended with a few caveats. A few caveats for investing in Bitcoin at current levels. This is not the last money, you are ready to lose it. You will be calm about the correction immediately after the probable purchase of BTC. You are ready to take small profits given the high growth rates of late. You are ready to see continued growth for some time after you take profit.
Grayscale Investments reported that their investments in crypto assets exceeded $ 10 billion, adding along with the growth of cryptocurrencies. The fund includes leading cryptocurrencies including BTC, BCH, ETH, LTC, XRP, and ZEC. Bitcoin has been growing rapidly in recent years and the transformation of past resistance levels into reliable support levels, the exit of technical indicators from the extreme overbought zone, as well as the emergence of an opportunity for an aggressive buyback of an asset due to a discount could well create conditions for the continued rally.
At the moment, Bitcoin will have to pass a serious test of strength. Although the coin is at very high levels, technical indicators are signaling extreme overbought. Thus, the index of greed and fear for Bitcoin and the largest cryptocurrencies reached the value “94”, which corresponds to the “extreme greed” mode. Of particular concern is the fact that the indicator was at these highs at the end of June 2019, when the crypto market passed the peak of the rally and began a correction. In addition, the RSI is at its highest levels since June 2019, when there was the last long-term correction after an advance. These are the factors against the continued growth of Bitcoin. However, until the correction starts, market performance is impressive. Thus, the total capitalization of the crypto market exceeded $ 500 billion. It is worth noting that this threshold was exceeded only during the historic rally of the crypto market in 2017. Bitcoin's dominance index is also at a very high 66.2%. In December 2017, it was about 63%, after which it began to decline rapidly due to the growing popularity of altcoins. Currently, the main focus is on Bitcoin, however, as the mention of cryptocurrencies in the media grows, interest in altcoins will begin to return, as retail investors will look for options for successful investment at relatively low price values.
After such a rapid growth, a really good scenario for bitcoin would be a rollback to past resistance levels, turning them into confident support levels, calming overbought technical indicators, the consolidation process and already growing with renewed vigor. Alternative.me calculates the greed and fear index on a daily basis on a scale from 0 to 100. Levels close to zero mean “extreme fear” and a value around 100 means “extreme greed”. The calculation takes into account five factors: volatility (weight: 25%), market dynamics / volume (25%), social media (15%), polls (15%), dominance (10%) and Google trends (10%). The volume of assets under the management of the crypto investment company Grayscale, meanwhile, reached $ 10 billion.At the same time, the capitalization of the crypto market for the first time since January 2018 exceeded $ 500 billion.
The market capitalization of bitcoin on Tuesday reached a new all-time high, surpassing the records of 2017, writes ttrcoin. Analyst firm Coin Metrics notes that bitcoin capitalization has exceeded $ 328.89 billion - the previous peak recorded on December 16, 2017. Investors usually pay attention to the price of a cryptocurrency, but capitalization is also an extremely important characteristic, since it reflects the total cost of the system. In addition, with its help, Bitcoin can be compared with other financial assets or companies.
In a sense, we are now seeing a situation similar to the stock market in the context of Bitcoin. Everyone understands that the shares are overbought, but the fundamental conditions are such that buyers are still there, and sellers are in no hurry to exit. Over the past day, not only Bitcoin has been growing, but almost all altcoins. The most impressive indicators are XRP and Litecoin, which jumped in price by 11.5% each. Coins from the TOP-100 are also almost all moderately in the green zone. In addition, demand is returning to DeFi again. Thus, the coin yearn.finance (YFI) grew by 12% in a day and again surpassed $ 20K. The total capitalization of cryptocurrencies has grown over the day by almost $ 13 billion to $ 475 billion, getting closer and closer to an important threshold psychological value.
The process of entry of institutions into Bitcoin is just beginning, which means that $ 16K is just the beginning. Bitcoin demonstrates significantly higher returns compared to gold, while BTC's market cap is just over 2% of gold. This fact cannot be ignored by big capital, so the end of 2020 may turn out to be bad for most, but not for Bitcoin.
The Greed and Fear Index has been in "extreme greed" mode at "90" since last week. In theory, the higher the value of the index, the closer the moment of sale, however, FOMO (fear of missed opportunities) does not allow market participants to launch a full-scale sale. Attempts by the bears to start a correction are shattered by high demand from buyers, while the dynamics remain positive. At the first sign of slippage, we may see a sharp decline in price as sellers can line up to take profits.
Bitcoin is clinging to $ 16K and is even trying to show growth. At the start of a new business week, the benchmark cryptocurrency is up over a percent and is trading above $ 16,300. The approach to $ 16,500 on November 13 was a serious test for Bitcoin, briefly pushing the price back to $ 15,800. This support level was already too tough for the bears, the coin bounced, and from that moment the tug of war between the bulls and bears has been going on for about $ 16K. Thus, Bitcoin's ability to overcome the $ 16,450 - $ 16,600 area could open the way for the coin to $ 17,200 and above.
Over the past week, digital asset management company Grayscale Investments acquired 15,114 bitcoins for $ 241 million. At the same time, there were an estimated 481,711 BTC in its wallets, which corresponds to 2.29% of all cryptocurrency coins issued. Apple should invest some of its huge cash reserves in bitcoin, says Dan Weisskopf, portfolio manager of Toroso Investments. In his opinion, thanks to the integration of bitcoin into Apple products and investments in the first cryptocurrency, the company's market capitalization can grow by $ 100 billion. The PayPal payment system has added the ability to buy, sell and store cryptocurrencies for American users. Supported cryptocurrencies include Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
|Exchange||Volume change, 24h|