As Bitcoin Hits 52-Week High, Altcoins are Absolutely Surging Again
Bitcoin’s sudden burst higher at the tail end of Sunday’s session has ignited a bigger rally for altcoins and tokens. By midday Monday, many of the large-cap altcoins had registered double-digit returns en route to fresh yearly highs.
For the first time in nearly a year, the cryptocurrency market appears to be making a bee-line to $300 billion, a feat that would have seemed highly improbable just a few months ago.
In terms of market capitalization, cryptocurrency values are the highest they’ve been in nearly a year. The combined market peaked at $275 billion on Monday, with the cumulative value of altcoins and tokens reaching $117 billion.
Ethereum (ETH) made a significant push to the north, regaining the $270 handle for the first time since September. The developer’s cryptocurrency has more than tripled from its bear-market low and was last seen tracking near $275. That represents a gain of 10% for the day.
XRP also extended its breakout, climbing 10.7% to $0.4245. After a dismal first quarter, the XRP price has gained 45% over the past month.
Bitcoin cash (BCH) jumped 9.5% on Monday to trade at $445.05, which was also a yearly high.
Litecoin (LTC) surged 16% to $116.97. EOS advanced 17.5% to $7.44. Stellar (XLM), Cardano (ADA) and Tron (TRX) each rose by at least 10%.
Bitcoin Breakout Continues
As Hacked reported late Sunday, bitcoin led the full-fledged breakout, as the leading digital currency crossed $8,800 just ahead of the Asian session. On Monday, the BTC price peaked at $8,939.18 on Bitstamp, a new 52-week high.
At the time of writing, the BTC/USD exchange rate was hovering just north of $8,860, having gained 1.5% on the day and nearly 11% over the past 24 hours. The technical picture is overwhelmingly bullish, though overbought risks have resurfaced. The relative strength index (RSI) is poking 80, which suggests that a broad pullback is likely at some point.
The bulls haven’t let overbought resistance weaken their resolve. After all, the last major pullback in market prices was due to an anomaly after a mysterious whale dumped 5,000 BTC on Bitstamp. Within 72 hours, the market was surging again.
The rebound was followed by a consolidation phase that eventually paved the way for the most recent leg higher. Our current trend north is not only impressive, but convincing. By breaching $8,250, bitcoin has escaped the long-term bearish channel that had dogged the market since early 2018. The next target for the bulls is $9,500-$9,600 followed by the highly coveted $10,000 handle.
Investors should expect a broad pullback at some point in the near future, though the extent of the correction could be much smaller than initially perceived.
It’s apparent that the whales loaded up on BTC during the early part of 2019 shortly after the market bottomed. It’s highly unlikely that these oversized holders are willing to liquidate their positions at current levels. Beyond the whales, most people involved in bitcoin are hoarding the virtual currency.
60% of all bitcoins have not moved in one year.
That's 10.5 million bitcoin being held as a store of value for the last 12 months.
You can buy 11,000 satoshis for a single US dollar, that's the deal of the century.
— The Rhythm Trader (@Rhythmtrader) May 27, 2019
As The Rhythm Trader recently pointed out, 60% of all bitcoin have not moved in one year, which is equivalent to 10.5 million units being used as a store of value.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via TradingView and CoinMarketCap.