The bitcoin price has surged to a new 2019 high once again at $11,381 less than 24 hours after climbing to $11,200 on June 24.
Analysts like Fundstrat’s Thomas Lee, RT host Max Keiser, and technical analyst Peter Brandt foresee the bitcoin price reclaiming its all-time high at $20,000 in the near term as the dominant crypto asset continues to see its momentum strengthened.
According to David Puell, the Head of Research at Adaptive Fund, strong resistance for bitcoin can be found at the $13,800 to $13,900 range.
There exists a possibility that the asset may consolidate as it reaches that range considering the lack of resistance between the current level to the $13,900 mark.
However, Puell indicated that if the bitcoin price powers through the $13,900 resistance level, it could send bitcoin to a new rally, potentially towards its record high.
“About to battle magnificents foes, the monthly and quarterly resistances at $13,800-$13,900. Fight might be bloody and tiresome, but once we claim victory, lads, by all means, all bets are off,” said Puell.
Initially, when bitcoin spiked over $10,000, a level widely regarded as a key psychological range for investors, analysts generally expected alternative crypto assets to recover against both bitcoin and the U.S. dollar due to rising sentiment around the crypto market.
In the past week, bitcoin has outperformed most crypto assets in the likes of XRP and ether, the native crypto asset of the Ethereum blockchain network.
Josh Rager, a crypto investor and technical analyst, said that the dominance of bitcoin over the market is likely to rise if its momentum is sustained in the near term.
“Bitcoin dominance continues to look bullish and as long as BTC continues to push up, no alt-season at this moment At 62.4% and pushing – if Bitcoin price increases, expect dominance to go with it,” he said.
Most of the strictly regulated infrastructure supporting the crypto market centers around bitcoin and with the CME futures market recording over a billion dollars in daily volume on peak days, the majority of institutional interest in crypto is speculated to be focused on bitcoin.
Hence, with reports suggesting that institutions have been the primary driver of BTC in recent months, some investors expect that BTC would continue to establish dominance over the market until retail investors come into the market.
In the bull market, retail investors tend to target high-risk high-return trades when bitcoin performs strongly against the U.S. dollar, fueling the rest of the crypto market. However, so far into 2019, such a trend has not been demonstrated by investors.
As bitcoin surpassed $11,381, investment firms in the crypto market in the likes of Grayscale saw a substantial increase in assets under management.
As of June 25, Grayscale manages $2.6 billion in assets under management, most of it coming from the Bitcoin Investment Trust (GBTC).
Yossi Hasson, the managing director at Techstars, said that at the current price of bitcoin, there have only been 73 days in its history that investors would be sitting at a loss from an initial investment.
“Bitcoin has been trading for roughly 3,399 days (from the time of the famous pizza purchase, till today). At the current BTC price, there are only 73 days (2.15%) where had you bought & held your first Bitcoin, you’d be sitting at a loss. This is one resilient tulip,” Hasson said.
Although some crypto assets such as Litecoin and Binance Coin have outperformed BTC since January of this year, BTC is expected to maintain its strong short term trend in the foreseeable future.
Click here for a real-time Bitcoin price chart.
Last modified: June 23, 2020 7:37 PM UTC