Bitcoin Pushes Through $11,000 as Bulls Look to Break Out of Range
Bitcoin put on its rally cap Thursday, as the bulls made another attempt at overcoming narrow trading conditions that have restrained price action in recent days.
BTC/USD Price Levels
The cryptocurrency reached a high of $11,078.04, narrowly overcoming Tuesday’s intraday peak. Bitcoin was last seen trading in the vicinity of $11,030, up more than 6% over the previous day.
An assessment of the Relative Strength Index (RSI) shows momentum is building, although prices are coming up against a firm resistance around the psychological $11,000 level.
Tepid trading conditions in the crypto market over the past month have actually worked in bitcoin’s favor. The cryptocurrency now accounts for roughly 41% of the total market in terms of value and 40% of the daily trade volume. Both figures have risen steadily over the past four weeks as demand for altcoins faded. As we reported Thursday, bitcoin’s share of the total crypto market has risen markedly in recent weeks.
Bitcoin remains above and beyond the most valuable cryptocurrency on the market with a total cap of $187.5 billion. Ethereum is a distant second all the way down at $85.5 billion.
At press time, the market’s total capitalization was $461 billion.
Market Consolidation Continues
Though bitcoin’s recent gain helped the crypto market add $20 billion to its value, underlying conditions remain fairly stable. This comes despite several fundamental indicators making a strong case for a bullish breakout.
Investors are in wait-and-see mode as they assess the long-term potential of the market and iron out details over possible legislation. This attitude is further reflected in the sharp decline in market activity over the past month. Overall trade volumes dropped by more than a third in February, as the crypto market entered a steep correction followed by broad consolidation.
That being said, several coins put up strong gains on Thursday, including bitcoin cash (BCH), which peaked around $1,300. The alternative to bitcoin was last up 7% at $1,292, according to CoinMarketCap.
Other big gainers included Tron, IOTA and Monero, the privacy-focused altcoins. Each currency added at least 7%.
In terms of news, the spotlight over the past two days has been on the SEC’s ongoing investigation into initial coin offerings. Washington’s top securities regulator has handed out subpoenas and requests for information to dozens of market participants, including Overstock, the company behind tZERO.
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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