Bitcoin approached $ 18,000 after its last drop to $ 16,100. The digital asset seems unstoppable in the past few weeks and has been climbing higher every day with only a few retracement periods.
However, this bull rally is more controlled and looks a lot healthier than the 2017/2018 period as there is much more trading volume currently on the market. The main driving force behind this new rise was PayPal, one of the world’s largest payment providers, supporting cryptocurrencies.
Volatility in the cryptocurrency market is currently extremely high, with some altcoins bouncing up and down more than 20% within hours. One of the most notable examples is XRP, which has reached 163% in the last 5 days to $ 0.78.
Bitcoin’s market cap has recently reached $ 353 billion for the first time, exceeding JPMorgan’s $ 352 billion. JPMorgan CEO Jamie Dimon generally calls Bitcoin and cryptocurrencies “scams”.
Bitcoin outperforms all other assets in the market such as gold, S&P 500, commodities or other major investment options such as US treasuries.
What’s next for the bitcoin and cryptocurrency market?
Bitcoin dominated the market but declined from its current high of 66% on November 19 to 61.8%, its current low; Other altcoins such as XRP, ETH, and LTC are on the rise. The total market capitalization of the market excluding Bitcoin has increased by $ 57 billion last week, which seems to point to the return of altseason while BTC’s dominance has declined.
Bitcoin appears to be facing only one major hurdle at $ 19,891 on Bitfinex and similar prices on other exchanges. By breaking the all-time high, it seems likely that a major spark will occur in the next FOMO wave, and potentially, Bitcoin’s price will rise to $ 25,000.
The MACD and RSI were not as high as in 2017 during the last bull rally, indicating that although the BTC price is close to its all-time high, it has a lot more room to grow.