Bitcoin blew past $8,000 without breaking a sweat
Analysts say bitcoin is here to break 60-day highs and chew gum, and note that it may be out of gum.
Bitcoin has pushed from $6,700 to over $8,000 in a week from 18 July to 24 July. It took a quick breather on 21 and 23 July, but otherwise continued to tirelessly power walk its way up the price charts, forming a classic unstoppable terminator robot price pattern.
This is bitcoin's highest price since the tail end of May, which might simultaneously be good and bad news for cryptocurrency enthusiasts. The good news is that it's definitely going up right now. The bad news is that a new 60-day high feels like a seismic shift.
Does this run have legs?
It's not possible to predict the markets with complete accuracy, but it's 100% clear that bitcoin prices might go up or down.
The chart below, from TurtleBC, might paint a pessimistic picture. The line indicates the percentage of buy orders on crypto exchanges, and it's pointing downwards so that probably isn't good.
On the other hand, most of the standing sell orders might be well above current market prices, the below chart isn't up to date and the data sources aren't necessarily complete, so maybe you shouldn't let the green line boss you around too much.
There are also signs that this time around things are a little different. Specifically, bitcoin has decoupled from most of the crypto markets and its dominance is growing.
This might be notable because the cryptocurrency markets usually move with bitcoin, not against it, which suggests that this current run is seeing a strong shift from people trading out their altcoins for bitcoin.
This might be a somewhat more dependable tank of bull-run gas than relying on moms, pops and institutional traders to pour boatloads of fiat into bitcoin while it's prices are ailing, and it might give it the boost needed to go a bit further than one might expect, and far enough for FOMO to kick in and lend a hand.
The market dominance charts are also colourful and nice to look at, unlike the morose avocado line above.
Bitcoin market dominance YTD
Bitcoin trade volumes are also reassuring, seeming to have some growing room to suggest that there's still a ways to go before nerves fail and the selloff starts.
Strangely, there are also some perfectly valid reasons why bitcoin prices would be growing right now, and one doesn't have to be a bitcoin fanatic to punt on this being the last chance for a while to buy bitcoin in the $7,000 range. The institutional interest in bitcoin accumulation is undeniable, plus bitcoin ETFs are looking promising in September and the G20 summit has painted a very promising checkpoint in October.
It's perfectly possible that this last week has elevated bitcoin to a higher long-term price floor. Failing that, it's at least in great shape after chugging its way up all those stairs.
Disclosure: At the time of writing, the author holds ETH, IOTA, ICX, VET, XLM, BTC and ADA.
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