Connect with us

Bitcoin

Why The Record $5,000 Bitcoin Monthly Close Could Soon Become The Norm

Published

on



Bitcoin is the best performing mainstream financial asset of 2020 and of the last decade. No other asset since its inception has brought investors a larger return on their initial capital. And at this point, there is only one day where the cryptocurrency traded at higher prices. If Bitcoin price can close at current levels, it’ll set a new record for the most profitable month in history in terms of the candle body.  

Here’s why this is significant and why it could be the norm moving forward in terms of month over month gains with a new bull market upon us.

November To Remember: Bitcoin Price Revisits Previous All-Time High

Bitcoin price is currently trading over $19,400 and is less than $600 away from setting a new all-time high peak on even the highest possible exchange price from 2017.

The leading cryptocurrency by market cap began the month breaking above its 2019 high and went parabolic from there. The 40% single-month gain has brought the cryptocurrency to a point where only one day remains where buying the cryptocurrency wasn’t profitable.

Only a wick above current levels remains on the daily ATH candle close | Source: BTCUSD on TradingView.com

And with the momentum that Bitcoin has at its back, a new record could be set today or at any point in the very near future. A correction cannot be ruled out, especially when nearly every investor that owns some sitting in some type of profit.

RELATED READING | HOW SATS STACK UP: COMPARING THE MILESTONE $335B BITCOIN MARKET CAP

But any downside is likely to be short-lived given the cryptocurrency’s scarce 21 million BTC supply, and sudden drastic shift in demand over the last quarter.

All Eyes On The Critical Cryptocurrency Market Monthly Close

With Bitcoin price trading at such prices, November is now the most profitable month in terms of candle body, in the cryptocurrency’s history. November will indeed to be a month to remember if the cryptocurrency can close at these levels.

RELATED READING | FOMO BEGINS: BITCOIN ADOPTION EXPLODES TO HIGHEST LEVEL SINCE PREVIOUS PARABOLIC PEAK

It will have broken a new all-time high for its market cap, potentially set a new price peak as well, and set the tone for what’s to come.

bitcoin btcusd ath

Bitcoin will close its most profitable month ever above $17,780 in total USD movement | Source: BTCUSD on TradingView.com

After Bitcoin broke its former all-time high in 2017, $500 and $1,000 monthly candles became the norm. While the $5,000 monthly candle might be shocking by current standards, they too could become a normal occurrence in the cryptocurrency market from here forward.

The last time Bitcoin cleared its all-time high, it never again traded at prices below it. Is this history in the making once again?

Featured image from Deposit Photos, Charts from TradingView.com



Source link

Bitcoin

Price analysis 1/22: BTC, ETH, DOT, XRP, ADA, LTC, LINK, BCH, BNB, XLM

Published

on

By


Bitcoin price has rebounded above a key trendline but resistance at higher levels may limit the recovery in altcoins.



Source link

Continue Reading

Bitcoin

Bitcoin Posts Massive Overnight Rebound, But Bulls Aren’t in the Clear Yet

Published

on

By




  • It has been a wild past 24 hours for Bitcoin, with the benchmark cryptocurrency seeing one of the most intense selloffs it has seen in quite some time yesterday
  • Following a slow grind lower that had taken place throughout the past few days, BTC eventually saw a capitulatory selloff that sent its price plunging to lows of nearly $28,000
  • At this point, many investors were clearly panic selling, as funding for short positions rocketing and long-sided liquidation began stacking
  • However, this happened to mark the bottom, as BTC has since seen a massive rebound from these lows
  • One analyst is noting that there’s still a crucial level that needs to be firmly broken above before BTC can see a continuation of its uptrend

Bitcoin and the entire cryptocurrency market have been caught in the throes of some wild volatility throughout the past few days.

Fortunately for bulls, BTC’s overnight rebound appears to be the “v-shaped” recovery that many analysts have said is needed for the crypto to form a long-term bottom.

Assuming that this rebound extends further, it could confirm a macro reversal and help lead to significantly further upside. There is one level, however, that must be firmly flipped to support first.

Bitcoin Shows Signs of Strength Following Overnight Rebound 

Yesterday’s massive selloff was quite intense and, at the time, seemed like it could mark a macro reversal of Bitcoin’s uptrend.

However, Bitcoin has rebounded since, currently trading up 5% at its current price of $32,270 – marking a notable surge from lows of nearly $28,000.

Where the market trends in the mid-term should depend largely on whether or not bulls can maintain this momentum and continue printing a textbook “v-shaped” recovery pattern.

BTC’s Not Out of the Woods Yet – Here’s Why

Bitcoin still has a key level to break above and flip into support before it is fully out of the woods.

One analyst spoke about this in a recent tweet, explaining that the first “point of control” he is closely watching is $34,900.

“POC at 34900 is first area of interest at the moment. Then we’ll reevaluate.”

Bitcoin

Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.

The coming few days should offer insights into the longevity and significance of the overnight rebound or whether or not it will be followed by continued downside.

Featured image from Unsplash.
Charts from TradingView.





Source link

Continue Reading

Bitcoin

Harvard crypto skeptic calls Bitcoin a ‘hedge against dystopia’

Published

on

By



Often touted as a store of value or hedge asset, Bitcoin (BTC) has gained significant mainstream adoption over the past several months. Kenneth Rogoff, a public policy and economics professor at Harvard University, doubts the asset’s success, however. 

“I can see Bitcoin being used in failed states,” Rogoff said in a Bloomberg interview on Thursday, adding:

“It’s conceivable, you know, it could have some use in a dystopian future, but I think the governments are not going to allow pseudonymous transactions on a big scale. They’re just not going to allow it. The regulation will come in. The government will win. It doesn’t matter what the technology is.”

Bitcoin has weathered its fair share of criticisms through its 12-year history. Gold advocate Peter Schiff often comments against the technology, investor Warren Buffett once referred to the asset as “probably rat poison squared”, and financial commentator Dennis Gartman expressed skepticism toward Bitcoin in late 2020, just to name a few examples.

Bitcoin adoption has continued to grow despite the skeptics, however. The asset broke past previous all-time price highs, hitting a recent peak near $42,000 after multiple large mainstream companies publicized their BTC purchases in 2020.

“I certainly think I agree that it’s speculative,” Rogoff said of Bitcoin.

He added:

“I’ve been a Bitcoin skeptic and certainly the price has gone up, but there’s sort of an ultimate question of what’s the use. Is it just valuable because people think it’s valuable. That is a bubble that would blow up.”

“I think, over the long-run, if there’s not a use, yes, the bubble will burst,” Rogoff posited. “I hope there’s not such a valuable use but I suppose it’s a hedge against dystopia.”

In contrast, leaders in the crypto industry have presented Bitcoin as a hedge under less abnormal circumstances.