Bitcoin starts strongly into the new week
The No.1 crypto currency gets a good start into the new week. The S&P 500 plays the Bitcoin again into the maps. Now the important trend line moves with 12000 USD into the focus of the investors. After the weeks of consolidation, this could be the beginning of a new upward trend. We take a look at the current market situation.
BTC bulls set the tone
At the time of writing, the BTC is quoted at USD 11503, which represents a daily gain of 1.06%. The market leader is thus reaching a new 5-week high and the bulls are approaching the resistance at USD 12000 with big steps. On the way to the USD 12000 barrier, however, the resistances at USD 11600 and USD 11800 must first fall. Currently the daily volume is around USD 25 billion, a rising trend compared to the previous day.
S&P 500 gives Bitcoin backing
Due to the high correlation to the traditional markets, the BTC benefits from a strong performing S&P 500. On Monday the stock index climbs above the important 3500 point mark with a price gain of 1.50 % (currently: 3529.25 points). The Tech shares are the most convincing performers. Today alone, investors invested over USD 2 billion in the crypto market. After the mega-investments of Square and Co. more and more investors are becoming aware of the “digital gold”. The starting position for a bull run could be worse…
Bitcoin Dominance Index remains high
The BTC Dominance Index is considered an important indicator for analyzing the role distribution in the crypto market. Currently, 58.2 % of the total market capitalization is in BTC investments. However, many Altcoins can benefit from the current price rally. After weeks, Ethereum (+ 2.88 %) is again approaching the 400 USD mark (current price: 384.79 USD), while Chainlink (+ 6.17 %) can confirm the jump to position 7.
BNB + 8 %
Binance Coin BNB has recorded the best performance of all the top 50 coins with a price jump of 8.28 %. This places the exchange coin at number 6 in the crypto charts. If the trend continues to improve in the coming hours, the jump to position 5 is a mere formality.
What is the next step?
A new crypto hype is in the air. More and more mainstream media are reporting on the digital currency, which is surviving the coronavirus pandemic almost unscathed. In addition, a low volatility rate is creating confidence among risk-averse investors. Currently, there are many indicators suggesting a renewed showdown at the USD 12000 mark. Should Bitcoin break through this barrier, there is little to prevent a new annual high.