Fireworks in the Bitcoin Market But Still Absence of Euphoria
Bitcoin is having a simply stupendous time.
Yesterday, we went to nearly $16,500 level, and the digital asset currently stands strong above the $16k level. With this, Bitcoin’s market cap surpassed $300 billion for the first time since the December 2017 top.
Interestingly, there have only been 20 such days in Bitcoin’s entire history when we traded above this level.
This is a level of interest as this is the final supply zone before the previous ATH and has a corresponding fib level from the bottom in March.
Much like this, “Never before in Bitcoin's history have there been more addresses active as a sender (7d MA),” as per Glassnode.
Moreover, the BTC futures market's open interest hit $5.9 billion, exceeding the top made in August.
#Bitcoin briefly reaches the $16,000 mark again for the first time since January of 2018
Some on-chain facts on the last 7 days:
– $55.55b transacted in on-chain trx >$100k
– $5.21b deposited into some of the top exchanges
– Highest daily addresses activity in 2 years with 1.21m pic.twitter.com/Fn5d70u3qM
— intotheblock (@intotheblock) November 12, 2020
But more importantly, the hype in the market, in terms of interest in the search term “bitcoin” on Google Trends, is non-existent. The market is completely devoid of excitement; while the crypto people might be recovering from the DeFi losses, the masses haven’t got the taste of it yet.
As a matter of fact, there has been more interest witnessed at the end of June 2019 than what the market is seeing right now.
As for the search term “buy bitcoin,” it is also flat, but even during the bull run of 2017, it started trending up only 6 months before the top and accelerated just two months before, in October.
Although we are far from that as mainstream frenzy about Bitcoin has yet to come, some have surely started. Major German news site “Tagesschau,” which has over 90 million traffic, featured Bitcoin’s uptrend, further stating that it could see $20,000 this year and $50,000 next year.
“Normal funding on BTC perps and no high premium on futures, herd isn't bullish at resistance,” noted trader Crypto Gainz. “16.2k is an inflection point,” he added.
— Alex (@classicmacro) November 12, 2020
This is why traders believe we could see a pullback. “I think BTC is a little stretched at the moment and could use a pullback in this general area. Maybe we see 16.5 first. There will be a time soon where in these instances, BTC will just keep ripping higher; I just think it's a little early still for that, but soon,” said trader Jonny Moe.
Not to mention the fact that CNBC has jumped on it too.
Brian Kelly of CNBC’s Fast Money told the host Melissa Lee that the high-profile investors getting into Bitcoin signals a bullish future for the leading digital asset.
“There's a lot of scope for upside. Most of the gains that come are the year after the halvening, and we’re seven months into that year after the halvening, and Bitcoin’s doing what it should do,” said Kelly.
“So there could be five more months here of pretty good upside,” concluded Lee.
Bitcoin bounces back! The cryptocurrency broke above $16,000 today for the first time since 2018 as investors jumped back into the trade. Bitcoin Baller @BKBrianKelly looks at what could fuel the bullish boom. pic.twitter.com/6cUegXrhPW
— CNBC's Fast Money (@CNBCFastMoney) November 12, 2020
CT took it as a sell signal, which makes sense given that CNBC’s bull calls have signaled market tops.
However, the crypto market has been waiting for a pullback for some time. Despite going parabolic with a 57% increase in just over a month, Bitcoin has yet to experience a meaningful correction.
As trader Bob Loukas noted, “Sustained rallies that push expected Cycle Tops out. Bears caught offside in disbelief. Standard bull behavior, folks praying for a pullback that never seems to come.”
Keep an eye on these key Bitcoin price levels (daily/weekly) from the 2017-2018 highs
They could likely reject before moving higher
But after $17,149, there isn't a lot standing in the way before $19,000+ pic.twitter.com/8sffFo6byo
— Josh Rager 📈 (@Josh_Rager) November 12, 2020
According to him, the real exuberance will come when we surge past the all-time high of $20,000, adding “but not before (likely) one more correction.”