Tags: Bitcoin Price, Crypto Market
The price of Bitcoin

Bitcoin bull sees digital currency at $60,000

Bitcoin is gradually gaining ground on gold, the traditional store of value. The data for Wednesday showed that one ounce of gold could only buy 0.0352 Bitcoin, the lowest amount of BTC in history. This indicates that Bitcoin has rewarded its investors much more than gold.

Bitcoin has vastly outperformed gold on various time frames. Even considering the most recent data for a year, Bitcoin’s risk-adjusted return is 270%. Meanwhile, gold’s gain was only 24% as of December 28, 2020.

The result leans even more in favor of Bitcoin when comparing more extended time frames of four or eight years.

In recent years, Bitcoin has matured as an asset class. During the previous bull run in 2017, Bitcoin’s 60-day volatility was 32%. However, in the current bullish phase, Bitcoin has recorded lower volatility of 14.25%. Analysts believe that as institutional adoption increases, volatility could fall further.

Moreover, there are no signs of a slowdown in the number of institutions showing interest in Bitcoin. If institutional adoption continues to grow, the sentiment is likely to remain positive. 

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BTC/USD

The psychological level of $50,000 saw only minor resistance to Bitcoin. It showed that the bulls are firmly in command and not rushing to record gains as they anticipate the bull run to continue.

A new all-time high above $51,000 is a sign of strength. The 20-day exponential moving average ($43.451) rising and the Relative Strength Index (RSI) in the overbought zone suggests that the bulls are in control.

If the bulls can hold the price above $50,000 for three days, the BTC/USD pair could rally to $60,974.43, where the bears can intervene.

On the downside, the first support is the 20-day EMA. If the bears can sink the price below it, the decline could extend to the 50-day simple moving average ($37,415).

BNB price has hit a new all-time high

Binance Coin (BNB) broke out of the $117.7289 to $141.32 range it had been stuck in for the past few days. Momentum accelerated today, and buyers quickly pushed the price above the all-time high of $148.40.

A break to a new all-time high after a shallow correction shows that traders are buying on every little dip and not waiting for a deeper correction to enter. The BNB/USD pair could now rise to $200.

However, traders should keep an eye out for the RSI as it has been trading at deep overbought levels for the past few days. This suggests that the pair remains vulnerable to a correction or further consolidation.

The first signal of weakness will be a break below $141.32.

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