The price of the main altcoins in the market has dropped in just 24 hours. That of Bitcoin has risen by 40% in the last month.
In recent days, the price of the pioneering cryptocurrency exceeded USD 16,000 again, almost three years after its biggest bullish run. The value of Bitcoin had last been at that level in early 2018.
On November 12th, amid a continuous rise, Bitcoin (BTC) flirted with the USD 16,000 level. It has even reached above USD 16,100. According to data from LiveCoinWatch, at the time of writing this article, Bitcoin is above that level, with an increase of close to 2.3% in just 24 hours.
This slight rebound not only allowed Bitcoin to maintain a sustained upward trend. The cryptocurrency also posted a positive performance between the 11th and 12th of this month, compared to that of the main altcoins of the top 15 cryptocurrencies. Bitcoin is the only one with green numbers on that list, beyond stablecoins and the ERC20 token version of Bitcoin (WBTC) launched on Ethereum.
This confirms the recent trend of Bitcoin going up while altcoins lose their value. It was the same thing that happened with the rise coinciding with the presidential elections in the United States a few weeks ago.
Bitcoin has had a notable rebound in recent days. The price of said cryptocurrency has risen by a total of more than 40% in 30 days, according to data from LiveCoinWatch. At the start of that period, BTC was just above USD 11,400 per unit.
Correction Before New All-Time High
The current trend of Bitcoin’s price increase has led many members of the ecosystem to speculate on new all-time highs in the near term. Among them is analyst Bob Loukas, who created The Financial Tap.
On his Twitter account, Loukas posted some insights about the price movement of Bitcoin. He believes that the cryptocurrency will soon break above USD 20,000. However, the analyst explained that this will only happen after a new correction.
This position is the same that he had at the beginning of the year when he predicted that Bitcoin would approach new highs towards the end of 2020.
Renowned analyst Willy Woo considered on November 11th that Bitcoin is starting a big bullish run. He comes to that conclusion because “BTC’s on-chain relative strength index is warming up.”
This year, Bitcoin had a promising start, with its best January in years, but the arrival of the pandemic affected its bullish moment. The price of the cryptocurrency had a major drop in March, from which it has been recovering steadily.
The sustained rise in Bitcoin’s price in recent weeks has coincided with a growing interest from institutional investors. Among them, Stanley Freeman Druckenmiller, a renowned US hedge fund manager, is a prominent example.
The investor said that Bitcoin could become a reliable store of value alongside gold in the face of a possible decline in the US dollar. In his opinion, this devaluation of the US fiat currency is not very distant and could occur within four years.
This year, the returns of the cryptocurrency have outperformed those of the rest of the markets. It has even outperformed gold, stock indexes, and large-company stocks.
By Alexander Salazar