Bitcoin shortly before annual high
The BTC bulls can pulverize the resistance at the 12000 USD mark and bullish investors pump billions of USD into the crypto market. After weeks of consolidation, the No.1 crypto currency is now facing a new annual high and “moon” calls are penetrating the mainstream. At the same time, alternative assets are desperately fighting for the connection. We take a look at the current Bull Run.
BTC price on Wednesday
At the time of writing, the BTC is quoted at USD 12221, which represents a daily gain of 3.97%. In the night to Wednesday, the bulls managed to jump over the stubborn USD 12,000 mark and the resistance at USD 12200 is also shaking. After crossing the long term barrier, investors shot fresh money into the market; currently the BTC trading volume is around USD 37 billion. This should lay the foundation for a bull run. But what are the limits now?
Do we see a new annual high?
From a bullish perspective, the trend line at USD 12300 represents the next resistance level before the previous annual high at USD 12359 is piled up. Should the bulls confirm the bullish trend in the coming hours, the trend lines at $12000 and $12200 will mutate into the new support areas that would provide a good basis for new attacks. Currently, many indicators are pointing to a new annual high. The mainstream is increasingly reporting on the “digital gold”, which is showing a unique performance in the Corona crisis. However, many experts assume that Bitcoin needs support.
All eyes on Wall Street
Due to the high correlation to the traditional markets, the focus is now on the start of trading on Wall Street. A stable S&P 500 could continue to play the bull’s cards, but the tug-of-war over the stimulus packages is proving to be the famous tip of the scales. Despite this, many investors are hoping for an encapsulation of the leading crypto currency. The jump over the USD 12,000 mark could be the starting signal for an independent bull run. Alternative assets can only dream of this independence at the moment…
Bitcoin Dominance Index at over 60
The Bitcoin Dominance Index rises to a value of 60.6% in the course of the upward trend. Accordingly, approximately USD 229 billion of the total market capitalization (approx. USD 373 billion) is in BTC investments. When Bitcoin started a new “moon shot” yesterday, the old coins could not follow. Again and again in the past months we could observe how Ethereum and Co. could profit from the price gains of the first mover, but this time everything could be different.
A look at the Altcoins?
Ethereum (+ 3.54%) seems to catch up with the Bitcoin on Wednesday. This means that the Smart Contract Coin is again approaching the USD 400 mark. Further down the line, the BTC Forks Bitcoin Cash (+ 5.44 %), Bitcoin SV (+ 3.42 %) and Litecoin (+ 6.41 %) are drawing particular attention. Polkadot (- 0.83 %) and Chainlink (- 0.25 %), on the other hand, are heading down. Overall, however, it now looks as if the alternative assets could avert a “bloodbath”.