Bitcoin and cryptocurrencies just aren’t stopping. Bitcoin has steamrollered through $41,000, leaving most altcoins in its wake.
Bitcoin is truth
With most of the world’s economies still wallowing in possible recession, or not far from one, bitcoin is leading the crypto economy onwards and upwards.
Whether it’s the wars that are currently waging, or whether investors are starting to see the truth and the safety that can be found in bitcoin, the king of the cryptocurrencies plus many of the more fundamentally sound cryptos are pushing higher and higher, and according to Coingecko, a $1.6 trillion market cap has been breached.
Source: Trading View
A note of caution
However, among all the euphoria for this latest surge, a note of caution must be raised. As can be seen on the chart, bitcoin has just come up against resistance at $41,700, and also the 0.5 fibonacci level. It would be imagined that bitcoin probably isn’t just going to steamroller through this level without a big fight from the bears.
In addition, all the stochastic RSIs look to have topped out, and the RSI (Relative Strength Indicator) is also moving into overbought territory. That being said, there are times in bitcoin’s history where these indicators have stayed high for quite long periods.
Is the ETF fully priced in?
On the bright side, money is still pouring into crypto from investors fleeing from fiat currency debasement and from other poorly performing asset classes.
One more thing in bitcoin’s favour is obviously the overhang of the impending potential approval of a Spot Bitcoin ETF by the SEC. While it still has not happened, its chances of arriving in the near future are being priced into the market.
If and when this earth-shattering news does hit the market, it will be interesting to see whether the market has indeed managed to price it in, and if we then see a sell-the-news event. However, it would not be surprising if we see a kind of bitcoin blow off top on the news.
If you are here just for the safety and freedom that bitcoin provides then all this relatively short term price action will not matter in the grand scheme of things. Bitcoin is the future of money.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2023/12/bitcoin-soars-higher-as-crypto-pushes-above-16-trillion-market-cap