So far and no further! Bitcoin and the 12000 USD limit
The market leader bounces back against the USD 12000 mark at the start of the week. The price then quickly plunges by around USD 300 before the bulls launch a new attack. It is not unlikely that we will see a new annual high in the coming hours. However, it is primarily a matter of a sustained confirmation above the USD 12000 mark. Should this mark turn into a support line, there would be little to prevent a new bull run. At the same time, the Altcoins are quietly scratching the BTC Dominance Index. We take a look at what is happening in the market.
Bitcoin price current
At the time of this article, Bitcoin is quoted at USD 11901, which represents a daily increase of 2,64 %. According to this, the bulls are about to attack the resistance again at 12000 USD. In the past 24 hours, the trading volume has increased by about USD 5 billion. Many indicators suggest that the purchasing power may be sufficient for another bull run. At the same time, Bitcoin is in the range of the previous year’s high (12045 USD). A new top value could sweep new buyers into the market as the mainstream increasingly reports on the “digital gold”. We could already observe a similar effect after crossing the magic 10000 USD limit.
How strong is the correlation to the traditional markets?
Does the BTC follow the S&P 500, the gold price, or is the crypto-market, with a total market capitalization of around USD 364 billion, large enough to represent an independent industry? In recent weeks, Bitcoin has been able to decouple itself from the major stock indices after a long period. Shortly afterwards, the gold price shot up to a new all-time high. US economic output had previously fallen by around 33% and panicked investors fled in search of a safe haven in gold. However, the No.1 crypto currency can also be recommended as a crisis-independent asset with a low inflation rate and limited reserves.
When the hype comes, anything is possible
Should the block chain market experience a similar hype to the December 2017-2018 hype, traders can buckle up. This raises the big question of how “grown up” the BTC has become after the third halving. In addition, the crypto market has developed enormously in the past 2 years. At that time scam ICO’s flooded the market. As a result, the damage in the billions resulted in an enormous loss of confidence, while calls for regulations arose. The world found itself in a situation that cannot be compared with the situation today. For this reason, forecasts are particularly difficult this time. However, the principles of FOMO and FUD have hardly changed in recent years, so be careful!
What are the Altcoins doing?
Ethereum and Co. can participate on Monday in the slipstream of the Bitcoins. In the Top 20, EOS (+ 7.53 %) has recorded the biggest price increase. Meanwhile, Chainlink (- 4.47 %) is recovering from the impressive price eruptions of the previous days. The Bitcoin Dominance Index falls to a value of 60.3%. The Altcoins gradually increase the pressure on the first mover, but it is not yet enough for an Altcoin season.