The Bull Run continues
The bulls hoisted the “digital gold” to a new annual high on Tuesday, igniting a new hype among investors. After crossing the USD 11000 mark, the next resistances could fall at a rapid pace. However, some experts are warning of the famous FOMO effect. We take a look at the current market situation.
Bitcoin price current
At the time of the article, the BTC is USD 11072, which represents a daily increase of 7.25%. From a bullish perspective, the resistance at around USD 11400 is now moving into focus. This is the range in which the bulls were last in just under a year ago. For now, however, the decision is being made at the USD 11000 barrier. The question is whether the bulls can find a sustainable support zone here.
FOMO effect in crypto space?
FOMO (fear of missing out) refers to the fear of investors who are afraid that they will miss the next bull run. We have seen this development in crypto-space in the past. In December 2017, thousands of investors stormed into the market without having dealt with the block chain before. The BTC share price peaked at a price of USD 9.00 in 2008, “moon” calls and “Lambo” cries flooded the crypto space and the total market capitalization exceeded the USD 500 billion mark. At the time, many experts spoke of a dangerous “bubble” that threatened to burst.
A different situation
At first glance, certain parallels to the situation at the time can be seen. However, the starting position in 2020 is different. The global economy is struggling with the coronavirus pandemic and “digital gold” is associated with a “safe haven” due to the low inflation rate. Not without reason did the gold price reach a new all-time high in the night to Monday. The limited Bitcoin has similar properties to the coveted precious metal.
Caution is advised
After the Bitcoin was able to overcome the long-term resistance at 10500 USD, the bulls pressed the accelerator pedal. The 11000 USD mark could even be just a small stopover on the way to the 12000 USD mark. The trading volume has risen to around 37 Med USD in just a few days and the mainstream media is increasingly reporting on the current bull run. The leading crypto currency may break away from Wall Street after months and investors are pumping billions of USD into the market. Good conditions for a sustained price rally.
Bitcoin Forks profit from bull run
Bitcoin Cash (+ 10,78 %), Bitcoin SV (+ 7,76 %) and Litecoin (+ 11,81 %) are the winners of the current price rally. As so often, the “splits” can profit from the price gains of the first mover, while coins like Ethereum (- 1.55 %), Cardano (- 0.30 %) and Stellar (- 0.15 %) will have to fight on Tuesday. Momentum is currently once again at the top of the market, with the BTC Dominance Index climbing to 63 %.