Bitcoin Price Cracks $11,000 in Jaw-Dropping Rally; Is $15,000 Next?
The fear of missing out (FOMO) has swept the digital asset market after bitcoin (BTC) blew past $10,000 on Friday for the first time in 15 months. Less than 12 hours later, bitcoin smashed through $11,000, bringing its total market capitalization closer to $200 billion.
The bitcoin price peaked at $11,200 on Bitstamp, gaining more than 9% in the process. At the time of writing Saturday morning, the BTC/USD exchange rate was valued at $11,147.
Over the 24 hour trading cycle, the BTC price is up nearly 13%. At current values, bitcoin has a total market capitalization of $197.1 billion, which accounts for 59.3% of the entire cryptocurrency market.
The intensity of the latest rally has pushed prices into extremely overbought territory, according to the daily relative strength index (RSI). That being said, the accumulation/distribution (A/D) line suggests demand for BTC far outstrips supply. In other words, far more people are buying bitcoin than selling.
As Hacked reported Friday, the $10,000 price level has unleashed a FOMO frenzy as traders look to capitalize on the uptrend that began four months ago. Ironically, a large segment of retail traders who wouldn’t buy bitcoin below $10,000 are rushing to get a piece of the action now that prices have crossed that psychological level.
The leading digital currency is up more than 250% from its December low and has returned 195% since the start of 2019.
From May 12, 2019: Five Reasons Why Bitcoin is Surging.
What’s After $15,000?
Earlier this week, Tyler Winklevoss tweeted that bitcoin will return above $15,000 once the $10k hurdle is crossed. His forecast is looking pretty good now that bitcoin has already topped $11,000. Since the vast majority of bitcoin’s annual returns are generated in the ten best days of the year, $15,000 may come sooner than expected.
According to cryptocurrency trader Peter Brandt, bitcoin is currently experiencing “its fourth parabolic phase dating back to 2010.” In his view, BTC will target the $100,000 price level in the current bull cycle.
Bitcoin takes aim at $100,000 target. $btcusd is experiencing its fourth parabolic phase dating back to 2010. No other market in my 45 years of trading has gone parabolic on a log chart in this manner. Bitcoin is a market like no other. pic.twitter.com/wE4j3riMgI
— Peter Brandt (@PeterLBrandt) June 22, 2019
Brandt’s view conforms with Hacked’s previous analysis of bitcoin’s four-year cycle. The previous four-year cycle ended in December with a 52-week bear market. It was preceded by a 153-week uptrend.
If we assume a similar trajectory, bitcoin’s current four-year cycle will peak sometime in 2021, or more than a year after the next halvening (scheduled for May 2020). Over that stretch, investors can expect long periods of consolidation, sharp reversals and even bigger gains. Until now, the uptrend that began in February hasn’t seen a major pullback of 30% or more, which is common during bull markets.
Read more in Hacked’s weekly review: Bitcoin’s Road to $10,000 Outshines Libra as Crypto Market Cap Crosses $300 Billion.
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. Chart via TradingView.