30.10.2020

BTC Tops $9,000, Recovery Leaves Stock Market in the Dust

Since its bottom near $3,850 on March 13, Bitcoin has pumped more than 130% in price, according to TradingView.com chart data. At its recent high near $24,750, the Dow has only risen approximately 36% since its March 23 low near $18,210.

Bitcoin (BTC) just broke past $9,000 at 3.30am UTC. The price recovery far outpaces the Dow Jones Industrial Average, or Dow, one of the mainstream market’s key barometers.

Bitcoin is once again the best performing asset in 2020.

All markets fell in March surrounding coronavirus fears

U.S. coronavirus prevention measures took over during the first half of March as businesses closed and citizens stayed home ‘sheltering in place’. Bitcoin plummeted more than 50% between March 12 and 13, shooting down near $3,850 on some exchanges

Meanwhile, mainstream markets also dropped massively, including a 10% dive from the Dow. The Dow continued posting a number of subsequent red days following March 12, reaching its most recent bottom on March 23.

In contrast, March 13 proved itself as the most recent bottom for BTC. The asset has carved out a nice recovery since.

The halving news could also be at play

As mainstream and crypto markets continue recovering, there’s one fundamental driver that may be at the helm of Bitcoins drastic upward thrust – the coin’s block reward halving.

Occurring only every four years, Bitcoin’s halving cuts its inflationary supply in half, essentially leading to less new BTC regularly entering into circulation.

Due in just 12 days, Bitcoin’s halving has garnered much discussion, as previous events ultimately led to subsequent dramatic upward price action.

Many experts have weighed in on the topic in recent weeks, with some explaining the event might not play out the same as previous halvings. Only time will tell.

Bitcoin’s Price Jumps Back Above $11K for the First Time In 3 Weeks

BTC’s price stalled and then was retested along the $10,600 area on Aug. 4, proceeded by a breakout above $11,000, 10 hours after its most recent sell-off. BTC was last seen changing hands at $11,227 after a strong hourly candle broke above $11,050.

Bitcoin (BTC) has risen back above $11,000 after regaining ground lost on July 8 and July 22, when the world’s largest cryptocurrency by total value suffered bearish breakdowns that sent its price below $10,000.

At 15:00 UTC on August 4, bitcoin rose above $11,000 for the first time in 21-days.

The move for BTC has also been accompanied by $3.9 billion in total volume traded over a 24-hour period hinting at a need for greater levels in order to sustain any further pushes to previous resistances seen at $11,400 and $11,880, but given today’s trajectory that is certainly possible.

As a result, other major names are flashing green today with Ether (ETH), TRON (TRX) and Tezos (XTZ) up between 1.7 and four percent, respectively.

Further, the total market capitalization of all cryptocurrencies combined rose by more than $9 billion over a 24-hour period, marking another consecutive day in the green and spurring on the possibility for a continuation in BTC’s price.

The short-term outlook now favors the bulls, given the weekly close produced a large bullish engulfing candle with eyes now setting on the weekly resistances at $11,400 and $11,880.

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