Bitcoin price yesterday shocked the finance world by setting a new all-time high. With resistance around this area still strong, and with so many cryptocurrency investors in profit for 2020, extreme FOMO and profit-taking is causing wild volatility resulting in more than $1,000 intraday moves.
This morning, exactly that happened, when after retesting yesterday’s peak, a rejection sent the price per BTC diving by 7% in less than an hour, shaving over a grand of the price of the top cryptocurrency.
Bitcoin Sees $1,500 Rejection At Retest Of New All-Time High
In the early hours of Tuesday morning, before the US stock market opened, Bitcoin price set yet another peak high – a feat that should be commonplace from here on out.
But a rejection at the high sent the leading cryptocurrency by market cap tumbling down by $1,500 and is now trading at $18,450 at the time of this writing. With volatility so high and prices gyrating out of control, there’s no telling what the price per BTC will be by the time this is published.
Related Reading | Bitcoin Targets $25,000 Fib Level With New All-Time High Set
Price action is moving so quickly as a result of the enormous buy pressure caused by the world learning Bitcoin set a new record after three years of near market, meeting sizable profit taking by whales sitting in the green.
Bitcoin was rejected from its all-time high, suffering a $1,500 loss in an hour | Source: BTCUSD on TradingView.com
The selloff was caught at mid-timeframe support, at around $18,400. If the key support level can hold, the leading cryptocurrency by market cap will take off toward another high.
High timeframe indicators are becoming extremely overheated and even some of the world’s best analysts are now warning that a top is near. But this is Bitcoin, and it is a bull market, with unique factors this time around that makes the cryptocurrency more bullish than ever.
Related Reading | Why The Double Top Narrative In Bitcoin Doesn’t Make Sense
The perfect storm narrative of an inflating money supply, gold looking archaic by today’s digital standards, and governments losing control over monetary policy, could create a situation where no level of overbought conditions can cause the crypto asset’s price action to reset.
Regardless, as John Bollinger warns, it’s time to pay attention, because if there is potential for a reversal, it happens today with the loss of the support level outlined above.
Featured image from Deposit Photos, Charts from TradingView.com
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Author: Tony Spilotro