Today, everybody in the crypto space is thinking: we’ve broken all-time highs.
Today, everybody in the crypto space is thinking: we’ve broken all-time highs.
While the daily move was strong, markets didn’t get carried away (yet) and prices pierced just a few percentage points above the previous 2017 highs. The significance of the move cannot be overlooked, though.
With the money-printing policies held of central banks in previous years, and which were particularly prevalent this year, investors have looked for alternatives to cash. They’ve bolstered equities, bonds, precious metals, offset some of the pain in real estate, but, the asset class that shines remains cryptocurrencies and more specifically Bitcoin. The stream of institutions commenting and allocating to BTC became a flood of good news that reinforced the narrative further.
The latest firm is AllianceBernstein, with $631 billion AUM, saying Bitcoin has a role in investors’ portfolios.
It’s also worth noting that while google searches and tweets mentioning BTC had remained tame through out this rally, in the past few days, it has decidedly picked up. Retail might be noticing the move and ‘FOMO’ could then be creeping in. Many analysts look at this rally and believe that it’s only the beginning of a much longer uptrend.
In the meantime, 100% of the Bitcoin supply (wallets holding coins) is in profit. BTC is up 180% for the year. Let’s savor this moment and see how much of a disruption the move and the asset itself will have on financial markets.
Any chartist out there will be looking at the beautiful green candle that took us at and past all-time highs. In 2017, BTC hit 19,511. In 2020, after plenty of dramatic falls and buoyant rallies, BTC has made its way back and prices set a new record at $19,857.
We could say we’re in ‘price discovery’ mode, really, exploring uncharted territory. Prices did stay within the $19,890 resistance, referred to in previous briefings and it’ll be interesting to see whether we break through or if traders give in to the impatience of profit-taking.
Naturally, at this point and with all the attention BTC is getting, the 20K mark remains the level to reach.
Whale transfers to exchanges have picked up, suggesting that some large holders of BTC might be ready to sell. We’ve also seen a diminishing supply of stablecoins on the exchanges, hinting at less dry powder for any explosive move to the upside.
Should we see a retracement, the $17,890 level would be an interesting support for a ‘breather’ before a renewed attempt towards and in the 20K’s.
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It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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