Bull market overbought state, we are in bitcoin era, we are facing bitcoin revolution
The latest data shows that the price of Bitcoin and other cryptocurrencies has suddenly risen, and Bitcoin is close to 16,000 US dollars.So why did the price of Bitcoin suddenly skyrocket?
In addition, how has the Bitcoin market been this year? How does it compare to other assets?.
The data also shows that in the past 24 hours, Bitcoin, the world’s most valuable digital currency, has risen by 10%. Overnight, the price of Bitcoin soared to $15,934, and Friday morning was close to a 2-year high. — — $15,755.
At the same time, as the price of Bitcoin has risen, and this has promoted the development of other cryptocurrencies, for example: the second most popular digital currency-Etalum has jumped by nearly 8%, and Ripple ( XRP) also rose by more than 5%.So why did Bitcoin and other cryptocurrencies suddenly soar?.There may be two reasons behind this.
On the one hand, U.S. factors, especially the increased possibility of Biden’s victory, have eased market uncertainty, which also stimulated the rise of cryptocurrencies such as Bitcoin;
On the other hand, the rebound in the prices of various cryptocurrencies is also carried out in the context of stimulus measures taken by governments around the world.
You know, when central banks announced plans to inject more funds into the real economy, some analysts pointed out that investors regard it as a signal and make it the only real asset with limited supply.
In fact, with the soaring price of cryptocurrencies such as Bitcoin, this is even more attractive than gold, which is a traditional safe-haven asset.
According to the latest data, the Bloomberg Galaxy Cryptocurrency Index (BGCI), the benchmark index that tracks some of the largest cryptocurrencies, including Bitcoin, has soared by about 120% this year. Since then, the price of gold has only risen by about 30%.
In other words, compared with the price of gold, Bitcoin has gained 4 times this year.
What about the future?
Some analysts pointed out that although Bitcoin has not yet climbed to a historical high of nearly $20,000, for the time being, Bitcoin may be moving in this direction because it has successfully broken through the resistance level.
The current Bitcoin bull market has begun. This is reminiscent of 2017, when we were basically parabolic. However, if you start from the year to date From a perspective, it has more than doubled, and this is undoubtedly the best performing asset in 2020.
At the same time, some analysts pointed out that in terms of technical indicators, the price of Bitcoin has risen by more than 50% in the past month, while the RSI indicator has exceeded 80, which is a typical bull market overbought state.