Bitcoin Price Showcases Resilience Following Anniversary Rally
Bitcoin held on to most of its gains Tuesday, as the market consolidated higher following an early-week rally that coincided with the one-year anniversary of its last record high. The bulls aren’t out of the woods yet, and price action over the next 24-48 hours could dictate whether the newfound strength is here to stay.
The bitcoin price reached a session high of $3,684.40 on Bitfinex, which was a considerable premium compared with other exchanges. At the time of writing, BTC/USD was trading hands at $3,594. The leading digital currency was valued anywhere between $3,470-$3,522 on other leading exchanges including Coinbase, Bitstamp, Gemini and CEX.io.
Looking at the aggregate pricing data, bitcoin was last valued at $3,523, having gained 4% over the past 24 hours, according to CoinMarketCap. Over the same period, trade volumes have surged by $1.7 billion to $5.8 billion, signaling a strong bullish shift in market sentiment.
Bitcoin approached $3,700 on Monday following a double-digit rally that reverberated across the virtual currency market. The rally came exactly one year after bitcoin notched its last record high, the now famous $20,000 bull run.
The spike pushed BTC into overbought territory, according to the Relative Strength Index (RSI). The RSI has since moderated back to the mid-50 region, according to the latest monthly chart.
The total cryptocurrency market cap was last spotted just below $113 billion. The market peaked above $115 billion on Monday. Market-wide trade volumes surged to $17.3 billion, according to latest available data.
Spencer Bogart Remains Bullish
One of bitcoin’s strongest backers believes 2018 has been a fantastic year for the leading digital currency – that is, if one looks past the price action.
In a new interview with CNBC, Blockchain Capital partner Spencer Bogart said there doesn’t appear to be an imminent ceiling to bitcoin’s market cap, arguing that the value limitations usually associated with early-stage tech startups do not apply to bitcoin.
“Bitcoin does not make a kind of price-to-earnings or price-to-value revenue that normally puts an upper bound or a ceiling on a typical kind of early-stage technology company,” Bogart said, according to CCN. “Bitcoin can surely reach that high. But how long will it take – we are not sure yet.”
From the perspective of institutional adoption and business development, 2018 has been a positive year for bitcoin. That value metrics have skewed the outlook to the downside isn’t at all surprising given last year’s crypto euphoria, which generated massively inflated prices in a short period of time. According to several analysts, the end of ‘crypto craze’ is a positive step toward establishing stability and predictability in the nascent asset class.
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.
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