Because Bitcoin has not reached its historical maximum (yet)

  • 2. Dezember 2020 at 12:26

The price of Bitcoin has reached new highs on several exchanges, but it has not yet reached the historical record of December 2017 at Coinbase.

The price of Bitcoin (BTC) reached $19,873 at Coinbase on November 30th, surpassing $19,000 in a surprising recovery. While many in the cryptomorphic sector are celebrating BTC by reaching an all-time record, it has yet to do so.

At Coinbase, the price of Bitcoin peaked at $19,891 in December 2017. The highest price ever at Coinbase is particularly important because it has consistently remained the leading exchange for the US in recent years.

In addition, some of the major global exchanges, such as Binance, were launched in mid-2017. It can be argued that an exchange that has existed since 2012 is more important in terms of historical price data and, to date, Coinbase remains one of the main ones for retail investors.

Bitcoin’s maximum varies in exchanges

2017 was a tumultuous year for cryptomorphs. After Bitcoin reached a new historical record, it saw price variations of 30% to 50% in one week, as the market for exchanges of cryptomoks showed a lack of liquidity.

Currently, record highs differ by almost US$ 300 between exchanges. For example, at the Kraken and Bitstamp, BTC reached a peak of US$ 19,660 and US$ 19,666, respectively. Today, BTC’s price has reached a new historical record in both exchanges.

In Binance and Huobi, BTC reached the top of US$ 19,799 and US$ 19,867, both reached on November 30.

At the time of this article, Bitcoin was still to see a new record at Bitfinex, Coinbase and Gemini, which are also known by coincidence as the whale exchanges due to their high liquidity.

In 2017, Coinbase was a leading exchange in terms of turnover and in the minds of many traders, seeing the price exceed the previous maximum would be further confirmation that a bullish market has officially begun.

For many traders, $20,000 is the barrier that needs to be broken, as it will officially set a new historical record for the highest rated digital asset.

A pseudonym known as „Bitcoin Jack“ has identified Bitfinex as the most liquid exchange during this ongoing high. Therefore, considering that the Gemini and Coinbase records are close to Bitfinex, the US$ 19,873 level is an accurate all-time record. He said:

„Be careful, as open interest liquidity indices have been hit on most exchanges. This means that until liquidity is replenished, the value of liquidity versus OI is relatively low, allowing for less contained cascades on both sides. As always, Finex is the queen of liquidity. ”

What will happen with the price of Bitcoin?

Analysts at the network, including CryptoQuant CEO Ki Young Ju, predicted that the whales would try the highest of all time and apply significant sales pressure.

As Bitcoin approached its record in Coinbase, a sudden sell-off occurred, bringing BTC to $18,998 in two hours.

Following the high level of volatility and whale induced sales, the amount of open futures contracts suffered a blow and foreign exchange order portfolios were damaged.

There are two short-term scenarios that Bitcoin may see after its first attempt to break its historical record.

First, the momentum may continue in Asian markets during the morning session and this may catalyze buyer demand to increase again.

Second, Bitcoin could consolidate under the highest record of $19,873, possibly ranging from $19,000 to $19,873. This scenario is the most ideal one for BTC to have a sustainable upswing, as it would prevent the derivatives market from overheating.