Bitcoin surpassed $18,400, hitting a three-year high, however, the cryptocurrency dropped to $17,400
Bitcoin achieves rapid growth with market optimism hitting an all-time high
Coin exceeded Bitcoin The level of $18,400 is at its highest level in three years, however, the cryptocurrency fell to the level of $17,400 and then rebounded and is currently trading near $17,900, the digital currency swings between a gain of 0.9% and a loss of 2.3% today.
Bitcoin reached an all-time high of $19,891 on December 17, 2017, but later collapsed by a whopping 84% as of December 3, 2018, reaching a low of $3,219.20.
However, the digital currency has come a long way since then, jumping an incredible 465% from that low. The decline of the US dollar amid the pandemic has helped boost the cryptocurrency, which is immune to fundamentals that have plagued the US dollar such as US debt. of $27 trillion, ongoing quantitative easing, and the lowest interest rates ever recorded in the United States.
On the other hand, Bitcoin has jumped 150% this year alone and advanced 15% last week, which even fierce critics of the digital asset like JPMorgan CEO Chase “Jimmy Dimon” cannot ignore.
Just this week, Dimon said he believed in blockchain technology if not the cryptocurrency itself as long as it was properly backed and regulated, and Dimon called Bitcoin a scam in 2017.
Extensive global interest in Bitcoin
Bitcoin has once again become the focus of mainstream media attention as the benchmark cryptocurrency has jumped 54% in just one month, which may be what allows Bitcoin so far to avoid an all-out correction, in addition to buying volumes from institutional investors, demand could also grow among Retail buyers, the fact is that Bitcoin attracted the main interest of major investors after the March crash when it was bought back at nearly $4,000.
Of course the current highs are not final, Bitcoin is likely to exceed $20,000, the hypothetical retail investor is now asking just one question: Isn’t it too late to buy Bitcoin? In fact, it is not too late if there is a willingness to risk and quietly watch the massive pullback and then make a small profit Relatively then waiting for continued growth for a while, it was a really good time to buy in March when everyone was scared.
Technical indicators are overbought
Technical indicators indicate that the currency is very overbought and the Crypto Fear & Greed Index for Bitcoin has reached “94”, which corresponds to the “extremely greedy” situation that worries many, especially since the index was at these extreme values at the end of June 2019, When the cryptocurrency market crossed the peak of the rally and the correction began.
These are factors against the continued growth of the cryptocurrency, however, the market indicators are impressive as the total market capitalization exceeded $ 500 billion, and it should be noted that this threshold was only exceeded during the historical rise of the cryptocurrency market in 2017, and the indicator of Bitcoin dominance Very high which is currently 66.2%, in December 2017 it was around 63% and after that it started declining rapidly due to the growing popularity of altcoins, the main focus is now on Bitcoin, but with the increase in the number of references to cryptocurrencies in the media will also start to interest coins The alternative is on the rise as retail investors will look for successful investment options at relatively low prices.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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