Bitcoin Soars To $15.9k, Is It Time For A Pullback?

Bitcoin has had the best week since the rally of 2018. Just like many analysts predicted, bitcoin’s resistance to all-time-highs dwindles the closer we get to it. The final wall was $14.5k. That was the price to beat and we completely demolished it. A surge this high comes with its consequences as well. All bitcoin holders are felling great but it’s important to stay grounded and avoid the ‘hot-hand fallacy’.

At the time of writing, bitcoin is being traded at $15.6k as Asian markets are correcting equities and gold. Bitcoin had a tremendous run but in the short-term, a correction would make sense. The bitcoin greed indicator clocked in a 90 out of 100, the second highest level in the entire history of the index.

The highest ever was made at the top of July 2019, 92 out of 100. This is an indicator to keep an eye on since greed has a tendency to chicken out quick. In a few hours we’ll be able to tell if bitcoin can diverge from equities or if it will follow them down.

Institutional support has been seen in the last couple of weeks but where are the retail investors? Well, they’re closer than we may have thought. Square has come out with its shareholder report and it gives us a good insight of retail investor activity. For the 3rd quarter, CashApp generated $1.63 billion in bitcoin revenue, up approximately 11x year over year. Leaders like Jack Dorsey, CEO of Square, make it easy for everyday people be a part of the wealth transfer from material to digital wealth. Dorsey gives companies the motivation to hedge their assets in an alternative way that may be very rewarding when allocated right. Let’s recall that he put 50 million when bitcoin was $11k.

Now let’s wait and see what the next day has in-store for us. We’re only in the beginning of bitcoin’s volatile period after the election. With lockdowns being made and stimulus needed to keep the economy going we’re still knee-deep in volatility.

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Cryptocurrency Research

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