On November 24, the price of the world’s largest cryptocurrency, Bitcoin, surpassed $19,000. Significantly, it hit the highest number in nearly three years. It followed an XRP flash crash on Coinbase, which trembled the cryptocurrency market.
Bitcoin has increased by nearly 40% in November and is up approximately 160% this year. The dominant cryptocurrency hit a peak of $20,000 in December 2017 before falling, losing a quarter of its value in a single day.
Remarkably, the two occurrences could be coincidental. Although considering that Bitcoin price rose almost immediately after the XRP fall, there could be a correlation.
On November 24, the price of XRP spiked by approximately 80% in 48 hours. Furthermore, as the rally continued, the hype around the cryptocurrency resumed intensifying.
It has to be mentioned that the interest in the cryptocurrency touched a point where it overwhelmed Coinbase, which is the biggest cryptocurrency exchange in the U.S.
The co-host of What’s You Miss on Bloomberg TV, Joe Weisenthal, emphasized that Coinbase was trending on Twitter. The spike in interest around Coinbase happened when the price of XRP started to rise.
Significantly, the problem arose when XRP crashed after reaching $0.90 on Coinbase. It caused the market to withstand severe volatility in a short period. The dominant cryptocurrency fell to around $18,000, while ETH declined to $585.
Furthermore, market trends imply that the flash crash led algorithms to cause high volatility. The world’s largest cryptocurrency price quickly increased from $18,000 to more than $18,500, eventually breaking $19,000.
A supply zone was likely tapped when the dominant cryptocurrency declined to $18,000 in just minutes. It might have fallen to an area with significant liquidity, causing many buy orders to get filled.
Traders and analysts think Bitcoin will continue its uptrend
According to the traders and analysts, Bitcoin will continue its uptrend in the near term. We all see that the dominant cryptocurrency nears its record high.
A pseudonymous investor, Blackbeard, pinpointed the lack of exchange inflows despite the price of Bitcoin hitting $19,000, which means that the selling pressure on the Bitcoin is still relatively low.
According to him, even though BTC’s price is more than $19,000, there is no unusual number of inflows to detect on the crypto exchanges. He says it makes him bullish.
Before the breakout of over $19,000, another pseudonymous trader known as Salsa Tekila prognosticated the rally. He stated that when altcoins cool down, profits would likely move back into the dominant cryptocurrency.
Additionally, there is a strong chance that the trend of profits from altcoins cycling into BTC will resume in the near term. If this occurs, the altcoin market would likely stagnate while Bitcoin exhibits strong momentum.