Bitcoin is hitting fresh highs during a surge past $15,000 while investors may be overlooking the upside of ether in 2020.
- Bitcoin (BTC) trading around $15,087 as of 21:00 UTC (4 p.m. ET). Gaining 7.7% over the previous 24 hours.
- Bitcoin’s 24-hour range: $14,005-$15,306
- BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
The price of bitcoin jumped Thursday, going up to $15,306 around 15:50 UTC (10:50 a.m. ET), according to CoinDesk 20 data, taking it to its highest price point since Jan. 8, 2018, when bitcoin’s high was $15,360. It has dipped since, settling at $15,087 as of press time.
Read More: Bitcoin Breaks $15K as Investor Numbers Peak
“Bitcoin is above the psychological threshold of $15,000 today on strongly positive momentum, having cleared resistance from 2019,” said Katie Stockton, a technical analyst for Fairlead Strategies.
Momentum, in the form of volume, was strong Thursday on leading USD/BTC spot exchanges. It was $1,233,248,261 as of press time, the highest since Oct. 21 when volume hit $1,273,812,127.
Stockton suspects momentum may subside, which may cause a price pullback. “There are some signs of short-term upside exhaustion from an overbought/oversold perspective supporting a few weeks of consolidation, but we would see this as healthy from a technical perspective.”
Analysts still see bitcoin as an asset to bet on in uncertain times over the long term.
“The U.S. is going to push the spending button again no matter who wins the White House,” noted Henrik Kugelberg. Next year “will probably see more individual support payments all over the world, and some of that money is inevitably gonna be placed in bitcoin.”
“The macroeconomic situation in the U.S. and elsewhere is far more uncertain, and concerns about COVID-19’s resurgence sending the economy back into a tailspin are not entirely unfounded,” noted Guy Hirsch, U.S. managing director at multi-asset brokerage eToro. “All in all, it feels like a perfect storm for retail [bitcoin] adoption that’s coming right at the beginning of an expected wave of institutional capital,” he added. While most markets are up Thursday along with crypto, the U.S. Dollar Index, a measure of the greenback versus a basket of other fiat currencies, is in the red 0.88% Thursday as of press time, down 1.6% since the start of November.
In the futures market, open interest for bitcoin contracts was back at $5.4 billion, with CME’s $804 million taking third place of all venues as institutional investors poured money in. The CME is a U.S.-regulated exchange for larger investors and brokerages, therefore its open interest growth is a signal large players are placing hedges and directional positions as part of some sort of…