Bitcoin experiences quiet Thursday
After the turbulent price rally to the year high on Thursday, the market leader is taking a short breather. This recovery phase is particularly beneficial for the old coins. However, the alternative assets still only account for one third of the total market capitalization. This is where the bullish news from Ethereum comes in at just the right time. We take a look at the current market situation.
Bitcoin price in detail
At the time of writing, the BTC is quoted at USD 17994, which represents a daily gain of + 1.34 %. Over the course of the day, the bulls repeatedly launched attacks on the resistance at USD 18000. However, it was not sufficient for a long-term breakthrough so far, as the pressure of sell-offs in these spheres is enormous. Historically, the days when the Bitcoin was able to show a higher price can be counted on two hands. The magic 20000 USD mark is in sight and “digital gold” is on everyone’s lips.
Bitcoin shows itself to be a reliable Store of Value
Not many experts prognosticated the Bitcoin before 8 months a so successful Chartverlauf. At that time, the traditional markets shot south in the wake of the Coronavirus Pandemic and Bitcoin rattled at breakneck speed below the USD 5000 mark. The high correlation to the major stock indices was initially the downfall of the leading crypto currency, but shortly afterwards this dependence turned out to be a stable basis for a respectable comeback. Hardly any other asset recovered so quickly from the consequences of the crisis. This was primarily due to the characteristics of the Satoshi currency. The low inflation rate and limited reserves provided clear buying arguments for insecure investors.
These limits are what matters now
After the turbulent price fluctuations of the previous days, the showdown at the 18000 USD trend line is now taking place. Should the bulls cross this barrier in the long term, the next resistances are at 18200 USD and 18394 USD (the current annual high is located here). On the downside, the trend lines at 17800 USD and 17600 USD represent the next supports. However, it remains questionable whether they will hold at this high volatility.
Bitcoin Dominance Index at 66.2
The BTC Dominance Index is an important indicator to determine the balance of power between the leading crypto currency and alternative assets. At the time of this article, it is at a value of 66.2 %. According to this, currently approx. 333 billion USD of the total market capitalization (approx. 502 billion USD) are in BTC investments. However, there is hope for the Altcoins.
When does the Beacon Chain start?
The long-awaited change from Proof of Work to Proof of Stake is considered one of the biggest highlights in the crypto year 2020. After long preparations, the project is now picking up speed. To date, approximately 110,000 ETH have been transferred to ETH 2 Deposit Contract. 524,288 ETH units are needed to start the Beacon Chain. On Thursday Ethereum (- 0.21%) is in a sideways movement.
Litecoin back to position 5
With a price increase of 12.55%, Litecoin conjures the strongest performance of all Top 20 coins onto the crypto floor. Thus the “digital silver” conquers position 5 in the crypto charts. Further down the line, Chainlink (+ 3.56 %), Polkadot (+ 3.75 %) and NEO (+ 3.13 %) achieved respectable price gains.