We Are Witnessing History… Again! BTC Prints Fresh ATH
The Rocket Has Launched. Where Will It Stop to Refuel?
On Thursday, Bitcoin reached a daily high of $112,000 and made history again, breaking yet another massive barrier: the previous ATH located at $109,350. Bitcoin’s market cap swelled above $2.21 trillion, which positioned the OG crypto among the most valuable assets, trailing only behind giants like Microsoft, Nvidia, Apple, and gold.
It is still a long way behind gold, which has a market cap of over $22 trillion but let’s not forget that Bitcoin was considered a joke not so long ago. Now its market cap is bigger than that of Amazon, Google, Tesla, and so many other giant companies.
In Bitcoin’s early days, it was regarded as “digital gold”, an asset that can be used to protect against risk. However, in more recent times, it has become more correlated with traditional markets and its role as an anti-risk asset has been diminished. This became increasingly obvious following the approval of spot Bitcoin Exchange Trade Funds (ETF), which brought BTC to the attention of institutional investors.
The recent All-Time High will not go unnoticed by institutions and buying pressure will probably increase. The previous ATH came after a huge bullish move that started after breaking out of a range with a bottom of around $55K. So, we can say that Bitcoin doubled its price by the time the previous top was reached and the market was already showing signs of severe exhaustion. Looking at the current move, it is not merely as overextended and it looks like it still has some fire left.
Chart Analysis – BTC/USD
Bitcoin is currently trading at $110,870, in overbought territory according to the Relative Strength Index (RSI). It first touched overbought on April 25 and it experienced a more severe overbought condition on May 8. The recent surge sent the RSI even higher but thus far there is no major bearish divergence.
Considering that Bitcoin is trading in uncharted territory, there is no known resistance ahead, except psychological levels. These are represented by big round numbers such as $115K, $120K, etc. The bias is clearly bullish and there’s renewed appetite for the OG crypto but we must be aware of price corrections which may occur sooner or later.
The idea of a correction is also supported by the fact that BTC touched the upper Bollinger Band three times (including the current touch) without retracing at least to the middle moving average. That being said, Bitcoin (and many assets that are in a strong uptrend) can disregard these signs and continue to move higher for a while.
