Bitcoin (BTC), the flagship cryptocurrency, is nearing its all-time high of nearly $ 20,000, which it reduced in December 2017 during the cryptocurrency market’s historic bull run. Bitcoin peaked at $ 18,950 last week and started climbing towards its year-to-date highs of $ 19,400 +.
OKCoin notes in a cryptocurrency market update that Bitcoin is now only a small percentage below its all-time high of $ 19,783 (although this figure varies between trading platforms with Gemini reporting a BTC price of $ 19,999 in December. 2017). Over the past weekend, the major digital currency swung between lows and highs and failed to make a decisive break in either direction (positive or negative), OKCoin confirmed in its report.
According to the exchange’s report, digital asset analysts are “optimistic” that Bitcoin will reach new all-time highs in the coming days as BTC’s price appears to “turn $ 19,000 into support”.
The report added:
“Altcoins (or alternative currencies besides Bitcoin), especially 2017 era coins like XRP and ETH, went into their own last week. XRP gained 80% in the past three days while ETH gained around. 25%. Bitcoin’s weekend consolidation gave the capital some time and attention to switch from it to these altcoin games. “
“Lot of [crypto industry participants] I also see this as a sign that there has been an influx of retail participants, referring to the fact that many of these investors have likely been ready to jump for coins they recognize from the previous bull market such as Ether and XRP. Some even suggest that because XRP and ETH were lagging behind with Bitcoin, they are finally catching up. “
Jason Lau, COO of OKCoin, noted that Bitcoin’s recent price movements have started to “hold” as the price of BTC has risen, leading to much more media attention around the world. This could lead to further capital inflows as investors who initially thought Bitcoin was just a fad may return to the market given the current situation.
Jason also said that the increase in open interest in the BTC futures market, coupled with a “sentiment of risk” as seen from the bullish price action in the equity markets, indicates that Bitcoin “remains very bullish”.
Ari Paul, CIO of BlockTower Capital, noted:
“For most of this rally, we have seen a clear algorithmic-style buying pattern during US hours and flat activity during Asian hours. Those are largely HNWs (high net worth people) buying big. quantities facilitated by algorithms “.
As can be confirmed with historical cryptocurrency volatility indicators, BTC’s volatility is quite low (relatively) even though there has been strong upside price momentum.
The OKCoin report points out that “for the most part, the past six weeks have been filled with two types of price action: strong upward moves and flat consolidation periods.”
Paul states that over-the-counter (OTC) trading desks that need to accumulate crypto-assets for their clients use certain algorithms or a TWAP offering so that capital can continue to flow consistently, preventing BTC from making significant downward movements.
Paul further noted:
“Over the past few weeks, I’ve had several phone calls with billionaire hedge fund managers arguing [Bitcoin]. ”
He says BTC could benefit from increased interest from investors looking to hedge their investment portfolios during these uncertain times.
“These buyers are only interested in BTC and are buying on a monetary narrative. A mixture of” inflation of this hedge and fiat depreciation “and” It’s an under-owned SoV (store of value) that is likely to appreciate in multiples even if only because other wallets add a small% “.”