In true bullish form, bitcoin has just smashed through the long held $20k resistance, making history once again. This is very exciting for the crypto community globally. This is euphoric territory. With over 7% gain so far today, this is a stylish break to the upside. Well done bulls.
Volume on the 4 hour chart is impressive in this breakout. Although only one of the 4 hour candles showed noticeable volume, which has not maintained to quite the same strength. That one candle on the 4 hour appears to have most of the move, while the following candle has price stalled at $20800 for now.
With price way up above the 10 MA on the 4 hour, bitcoin only has its aim for the moon. The bull run is in full swing by the looks of it at this stage. Also the RSI on the 4 hour is way overbought up to the 80 level, when 75 is considered overbought already. This would be a perfect time for the RSI to top out and retrace.
On the daily chart, the RSI has remained above the middle 50 range and thus in bullish territory throughout this parabolic bull run since October. The bullish momentum has surprised me and impressed me like seldom before.
Now that we have broken the long-awaited $20k ceiling, the market may settle down and price may have that long-awaited retrace back below $20k. My bearish sentiment remains, and it could just be personal bias, so don’t take my opinions as science at all.
The altcoins certainly are being left behind, in BTC value. ETH has kept up to a degree, in dollar terms, with its own similar 6% pump. The bitcoin dominance is climbing slowly but surely, and the overall cryptocurrency market cap has climbed 5.6% today, with this pump. We now sit above $609 million in total. The last ATH total market cap was around $800 billion, at the last ATH of 2017 and early 2018, during the alt season, more than today, if I remember correctly, meaning the alts still have room to grow and to pump up the figures overall.
Let’s see if the alts have a pump now too, if bitcoin consolidates. Also remember that December 17 – which is in a few hours, is the anniversary of the last BTC ATH in 2017. It was on the 17th that the ATH was reached and then the massive dump took place. The time is different now and conditions are nowhere near the same in the bitcoin market, so the likelihood of the date repeating would be a coincidence.
Curiously XRP and LTC have also pumped 7% today, keeping up with BTC, to a degree. This is a bullish sign for the alts, and bitcoin is simply pulling the top alts up with it. Not all of them are keeping up though, so alts would be risky still. As for bitcoin, now that $20900 is the new all time high, we are stepping up like a ladder, $1000 at a time by the looks of it.
The RSI on the daily is actually making lower highs and lower lows, as a bearish divergence compared to price action, so let’s keep that in mind. It suggests a dip is still due. Also the weekly RSI is overbought and has been for weeks already, making it more high risk than usual to buy or enter the market or go long on bitcoin now. Yet still we keep climbing.
