The cops break further resistance
The Bitcoin moont! With an impressive bull run, the No.1 crypto currency climbs above the USD 9000 mark. Now the bulls are attacking the five-digit range and the Altcoins are participating in the upward trend. Due to the upcoming halving, the crypto space is moving into the focus of the mainstream media. Are we experiencing a hype like in 2017? We look at the market situation.
Bitcoin out of control
The Bitcoin sprints to a trading value of USD 9210 with a price increase of about 17 %. A 24-hour volume of approximately 71 billion USD illustrates the great interest of investors. In the past few hours investors have pumped more than 30 billion USD into the crypto-market. The total market capitalization now stands at around USD 258 billion. Of this, approx. 169 billion USD are in BTC investments. Accordingly, the Bitcoin Dominance Index rises to a value of 65.6 %. The old coins are moving further into the background.
These limits are now moving into focus
After the price explosion, the five-digit USD area has moved into the bulls’ sights. On the way to the magic boundary, the key figures are 9400 USD and 9800 USD. Due to the enormous volume of buyers, many indicators speak for a quick breakthrough of these resistances. One should always watch out for the FOMO (fear of missing out). The volatility is back and price fluctuations in the double-digit percentage range are back to normal. On the downside, the trend line at $9200 USD now forms the new support line. After that, the support area at 9000 USD would come to the rescue.
Reasons for a sustained bull run
The list of arguments in favour of a price rally is long. To put it in perspective: In October last year, we were able to observe how the BTC pumped up a whopping 40 percent in just a few hours. In comparison, the current Bull Run does not represent an unusual price trend. However, the markets are in the middle of a global economic crisis. The coronavirus pandemic has been making the headlines for months, unemployment figures continue to rise and there is no final solution. Against this background, the current price rally takes on a different meaning.
Halving in less than 2 weeks
The upcoming Halving Event comes at an optimal time. In less than 2 weeks, the Coin Rewards will be halved from 12.5 BTC to 6.25 BTC per prospected block. As a result, the inflation rate will fall to around 1.8 %. This effect should convince many insecure investors in their search for crisis-stable value stores. Search queries for the term “Bitcoin Halving” are already at an absolute record level. By crossing the magical USD 10000 market, the “digital gold” should continue to be in the focus of the mainstream media. Moreover, the traditional markets have been performing consistently for weeks. Time and again, experts have drawn attention to the increased correlation between Bitcoin and the major stock indices. The last trading day of a shortened week is approaching and Wall Street reacted to positive news about the active ingredient Remdesivir. Not bad conditions for Bitcoin.
What does Ethereum do?
The Altcoins continue to position themselves in the slipstream of the number one crypto currency. Ethereum makes the second highest jump in the Top 10 with a price jump of about 10%. This puts the “Smart Contract” coin at a price of USD 215.