Bitcoin Shot up by 6%, coming out of a long sideways
Bitcoin came out of a prolonged sideways trend, shooting up 6% over the past 24 hours. Back at the end of last week, he needed support on the decline to $60K, but on the weekend he received steady demand. The exit above $63.5K provoked a wave of optimism, which quickly sent the price of the first cryptocurrency to the area of highs near $66K.
The cryptocurrency index of fear and greed has not kept pace yet, stopping at around 75, cruising in the area of greed since the middle of last month. The capitalization of the crypto market, both with and without bitcoin, updates historical highs, indicating that the bitcoin jump may be only a secondary effect in the current altcoin season.
From the technical analysis side, bitcoin has a sufficient margin for growth, as the bulls have clearly accumulated strength during the monthly consolidation of the first cryptocurrency. The RSI index, after being overbought from the October rally in recent days, has entered neutral territory.
The jump in the bitcoin price after a prolonged consolidation opens the way for $83K, which corresponds to 161.8% of the rally from late September to mid-October. Investors in the crypto market should be prepared that this part of the growth can be realized quite quickly.
Bitcoin went up from the side, Bitcoin went up from the side
History suggests that entering the territory of new bitcoin highs attracts extensive attention and money to it, strengthening the rally in the early days, until the headlines about the next historical maximum of the first cryptocurrency and the total capitalization of the crypto market become familiar.
However, for experienced investors in cryptocurrencies, the rise of altcoins and the lag of bitcoin, as well as the timing of this event, raise unpleasant analogies with the end of 2017. Back then, the altcoin rally was particularly fierce from November to January. Many of the altcoins that existed then and now are still far from their highs.