Analytics / Forex and Crypto News
Today the Bitcoin price has reached a new high at $18483. But after that, it showed a pullback of more than $1000 to the area of $17250. And at the time of publication, Bitcoin is trading at $17950.
Thus, this is the first major pullback in the price of Bitcoin after it passed the mark of $16000. And some analysts believe that this pullback is the first attempt by the bears to start a downward correction. The level of $18483 has become a new price peak over the past three years. However, it is possible that the level of $17800 became a new support level for the pair BTC/USD.
Against the backdrop of the pandemic and global economic problems, Bitcoin has become the most effective asset in 2020. Since January 1, the value of Bitcoin has increased by 145%. And worsening economic problems, political uncertainty, and a new wave of the pandemic are prompting investors to invest in Bitcoin to protect wealth and adapt to the coming digital era. Moreover, fiat money demonstrates its weakness and has proven vulnerable to global crises. In addition, thanks to the additional emissions, the money supply are unlimited, while the Bitcoin supply is only 21 million BTC.
Back in Bitcoin, the rally above the 10000 mark was the first major step at the beginning of the bull rally. The rally above the 2019 high continued the bullish rally.
Any drawbacks will be limited as FOMO has already started working in the cryptocurrency market and at the moment, a new bullish rally is just a matter of days.