The Bitcoin (BTC) rate shot through the $12,000 mark last night and set a new year record. The current price for one BTC is currently $12,188.55. That’s 3.75% more than 24 hours ago.
On Twitter, the analysts immediately go all out for tonight’s rise. For example, Josh Rager notes that Bitcoin Pro hasn’t closed above $12,000 on the weekly chart since January 2018. He is convinced that the bull market has really started.
Dave the wave, another well-known analyst, throws some more oil on the fire. He compares the advance that started in March this year with earlier parabolic growth. In doing so, he even implies that in the short term the price could go on to a new record above $20,000.
He also gives an immediate warning: after each parabolic growth there will be a correction.
On the other hand Pinetoshi sees that in the meantime the price has arrived at a resistance. The next few hours are going to be crucial in this respect: will the price continue to rise, or has the gunpowder already fired?
Repetition of history
With such rises as those of the past few days the hopium is immediately taken out of the cupboard again. Tytan compares Bitcoin’s current situation with that of the previous cycle, which started about four years ago.
Then the price broke out of a trend line. In the graph below, he copied exactly what happened then. The result? Repeatedly, the price reaches a peak of $400,000 in 2022.
The green that Bitcoin has been dealing with over the last few days has been at the expense of the altcoins. The dominance of the largest crypto currency has risen to its highest point in three months. According to Tradingview, this currently stands at 62%.
By the way, it gives a distorted picture. There are a lot of illiquid altcoins in this comparison and also the different Wrapped Bitcoin variants ensure that this percentage is not entirely correct.
Against dollars and shares
Finally, Goomba notes that there is a striking similarity between the Bitcoin rate (looked at in dollars) and the DXY. This stands for the U.S. Dollar Index. When the dollar is under pressure, the cryptomint flourishes.
The DXY was originally developed by the U.S. Federal Reserve in 1973 to provide value of the U.S. dollar against global currencies. The U.S. dollar index rises when the U.S. dollar „gains strength“ (value) compared to other currencies.