Market Update: Bitcoin Spikes Over $16K, RSI Levels Warm Up, Price Retracts for Another Attempt
Digital currency markets have seen some decent gains this week, as the overall market valuation of all 7,000+ crypto assets is hovering above the $446 billion mark. Traders also watched the price of bitcoin jump above the $16k zone on Thursday for the first time since 2018.
Bitcoin and a number of other crypto-assets have been climbing northbound in price on Thursday, November 12, 2020. At the time of publication, the entire crypto-economy is up over 2% and valued at $446 billion today.
During the early morning trading sessions on Thursday, bitcoin (BTC) touched a high of $16,177 on Bitstamp. The last time the price of bitcoin was in this range was on January 6, 2018. BTC’s price has retracted since it touched the 2020 price high.
BTC/USD chart on Bitstamp shows BTC touched a high of $16,177 during the early morning trading sessions.
Crypto analyst Willy Woo detailed on November 11, that Bitcoin’s relative strength index (RSI) is starting to warm up. While showing a chart on Twitter, Woo tweeted: “Green circle denotes where we are in this macro-cycle. Start of the main bull run (in case it isn’t already obvious). BTC’s on-chain Relative Strength Index is just warming up. Red verticals are the halvenings, providing the bullish supply shock impulse.”
Bitcoin (BTC) is up more than 80.98% year-to-date against the U.S. dollar and during the last 90 days, the asset is up 35% against USD. 30-day charts show BTC has gained more than 39% during the last four weeks as well.
Some traders believe the second round of Covid-19 outbreaks may push the price toward retracement. The crypto trader @Chase_nl explained his prediction to his 18,000 Twitter followers on November 11. “As euphoria sweeps CT (crypto Twitter), Covid’s second wave is sweeping the world,” Chase tweeted. “Will Fed intervention keep everything afloat? Probably. But pandemic + weekly resistance = reduce risk for me. As said, I sold off some spot bitcoin at $15750. Today, some ETH at $472,” the trader added.
In a Messari research note, the firm shows that bitcoin (BTC) has outperformed gold, stocks, cash, and bonds this year as far as risk-adjusted returns are concerned. Messari leveraged the “Bitcoin Sharpe Ratio,” in order to inspect the crypto asset’s performance.
If BTC consolidates above the $16k handle some traders expect a “real crash” after that point in time. “Alright, the new gameplan is we’re going to perform an elaborate upwards chop that rekts ltf traders,” the crypto trader @Lomahcrypto explained on Twitter. “Push it past the general consensus bullish target say.. $16,400-16,700, then we have our first real crash that reminds everyone of the destructive nature of BTC even in a bull market.”
At the time of publication, bitcoin (BTC) is still attempting to surpass the $16k region again and is trading in the range of $15,750 to $15,950 during the last two hours.
Ethereum (ETH) is swapping for $461 per unit, while bitcoin cash (BCH) is trading for $257 at the time of writing. The BCH community is expecting a fork in three days’ time on November 15, 2020.
What do you think about the current crypto market action on Thursday? Let us know what you think about this subject in the comments section below.
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