Bitcoin

Why hasn’t the price of Bitcoin hit a new all-time high?

Bitcoin (BTC) price hit $ 19,873 at Coinbase on Nov. 30, topping $ 19,000 in a surprise recovery rally.. Although many in the crypto sector are celebrating that BTC has hit an all-time high, it has yet to do so.

On Coinbase, the price of Bitcoin hit a high of $ 19,891 in December 2017. Highest price ever on Coinbase is especially important as it has remained the leading US crypto exchange for the past few years.

BTC / USD monthly chart on Coinbase. Source: TradingView

Furthermore, Some of the major global exchanges like Binance launched in mid-2017. One could argue that an exchange that has been around since 2012 is more important In terms of historical price data and to this day, Coinbase remains one of the top exchanges used by retail investors.

All-time bitcoin highs vary between exchanges

Why hasn’t the price of Bitcoin hit a new all-time high?
Why hasn’t the price of Bitcoin hit a new all-time high?

2017 was a turbulent time for cryptocurrencies. When Bitcoin hit a new all-time high, there were price fluctuations of 30% to 50% in one weekas the cryptocurrency market experienced a lack of liquidity.

Nowadays, All-time highs differ by nearly $ 300 between exchanges. For example at Kraken and BitstampBTC peaked at $ 19,660 and $ 19,666, respectively. Today the price of BTC hit new all-time highs on both exchanges.

At Binance and Huobi, BTC peaked at $ 19,799 and $ 19,867, respectivelywhich were also achieved on November 30th.

At the time of this writing Bitcoin has not yet hit a new high at Bitfinex, Coinbase and Gemini, which are also known as whale exchanges due to their high liquidity.

In 2017, Coinbase was a leading exchange in terms of trading volumeIn the minds of many traders, an additional drop in prices from the previous all-time high would be additional confirmation that a bull market has officially started.

For many dealers $ 20,000 is the barrier to break as it will officially set a new record for top ranked digital asset.

A trader known as “Bitcoin Jack” pointed to Bitfinex as the most liquid exchange during this ongoing rally.. Given that the all-time highs for Gemini and Coinbase are close to Bitfinex’s, the $ 19,873 level is an accurate all-time high. The said::

“One has to be careful as the liquidity at the opening of interest rates on most exchanges was compromised. This means that until the liquidity is replenished, the amount of liquidity compared to OI is relatively low, which enables fewer cascades contained on both sides. As always, Finex is the king of liquidity. “

What’s next for the price of Bitcoin?

On-chain analysts including Ki Young Ju, CEO of CryptoQuant, predicted that the whales would try to hit the all-time high and put significant selling pressure.

As Bitcoin was nearing its record on Coinbase, with a sudden sell-off that brought BTC to just $ 18,998 in two hours.

After high volatility and a whale sell-off, the futures market’s open interest suffered and the order books for exchanges were hampered.

There are two short-term scenarios Bitcoin could see after its first attempt to break out of its all-time high.

First, the momentum in Asian markets could continue during their morning session, which could cause buyer demand to pick up again.

Second, Bitcoin could consolidate below the all-time high of $ 19,873 and potentially range between $ 19,000 and $ 19,873.. This scenario is best for BTC to experience a sustained rally as it would prevent the derivatives market from overheating.

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