BTC bulls maintain level
The rising number of new coronavirus infections and the ongoing dispute over the US aid packages are putting pressure on the major stock indices. The S&P 500 opened the week with a price slide of 1.86%, while the Dow Jones Industrial (- 2.29%) plunged below the important 28000 point mark. Bitcoin is only impressed by this negative trend for a short period of time and the bulls push the price back above the USD 13000 mark. Quite a few users see this development as a possible encapsulation from the traditional markets. We take a look at the current market situation.
Bitcoin price on Tuesday
The No.1 crypto currency climbs to a new annual high of 11604 USD in the afternoon. This value corresponds to a daily increase of 4.46%. At the same time the total market capitalization jumps above the 400 billion USD mark and banking giant JP Morgan is in the starting blocks with the long-awaited JPM Coin. Without a doubt, the leading crypto currency is one of the assets that performs best in the coronavirus crisis. But is the current hype enough for a sustainable encapsulation from the big trading places?
Bullish investors are shooting billions of USD into the crypto market in these hours, FinTech giants are boarding the block chain world and all-time high forecasts are buzzing through the mainstream media. Even today, the leading crypto currency is still setting itself apart from a consolidating S&P 500 (- 0.09%). Again and again the traditional markets had left their mark on Bitcoin in the previous months, but now the situation seems to change abruptly.
Bitcoin on the way to becoming a “crisis currency
Bitcoin has several properties that apply to a crisis-resistant “store of value”. Due to its decentralized character, barrier-free transaction options and limited occurrence, more and more investors are turning to “digital gold”. In addition, the market entry of PayPal addresses over 330 million users, a milestone in terms of adaptation. But how does it look charttechnisch?
On this borders it depends now
After reaching a new high for the year, the bulls face resistance at USD 13800 and USD 14000. In these regions the bulls are lurking with stubborn barriers. However, some traders can only too well remember the events of December 2017. At that time, hype and FOMO (fear of missing out) lifted the market’s leader over the USD 20000 mark at breakneck speed. In addition, the rising volatility and the possible isolation from the traditional markets could come in very handy for the bulls.
Bitcoin Dominance Index now at 62
The Bitcoin Dominance Index is considered an important indicator to determine the relationship between the BTC and alternative assets. On Tuesday, the ratio was 62%. According to this, about 252 billion USD of the total market capitalization (about 406 billion USD) is in BTC investments. Nevertheless, this development could benefit the Altcoins, as they profit from the performance of the first mover in the slipstream.
A look at the Altcoins
Ethereum (+ 3.72 %) can use the upswing of the BTC to increase its own share price. The Smart Contract Coin is currently trading at USD 408.73. Further down the line, it is primarily coins such as Chainlink (+ 5.48 %) and Polkadot (+ 5.32 %) that are drawing attention. Overall, most of the old coins can follow the BTC with a certain delay. Now it comes to the showdown at 13800 USD.