BTC price shows wild volatility after setting the new ATH record
03.12.2020

BTC price shows wild volatility after setting the new ATH record

By bit.team

On November 30, BTC shocked the financial world by setting a new ATH above $19,800 on leading exchanges such as Binance and Bitstamp, but then made a rebound to a value of $18,300.

Bitcoin is stunning the financial world again

As we reported, the bears immediately tried to weaken this movement, and for a moment gained control over the price action of the coin. The pressure of sellers from Bitcoin, which set a new price record, caused a sharp rejection, as a result of which the flagship cryptocurrency was pushed back to the mark of 18,300$.

Fortunately, the bulls stepped up and completely changed the downward dynamics seen overnight. The price of BTC/USD again soared to the mark of 1900 dollars, as buyers erased almost all losses that occurred after the refusal.

The movement, during which the bulls targeted a re-test of resistance in the amount of 19,800$, speaks of Bitcoin’s main strength. It also highlights the underlying weakness that haunts bears at the moment, rendering them unable to gain any substantial control over the price action of the royal coin.

However, resistance near the 19,400$ zone still remains strong. With many investors excited about the extreme FOMO ATH, profit-taking causes volatility in the Bitcoin market to skyrocket, leading to intraday movements worth more than $1000.

At the time of writing, the world’s leading cryptocurrency has fallen by 0.41%, at the current price of 18,516 dollars. However, due to high volatility and prices out of control, it is difficult to predict BTC’s value in the next trading session.

The news that BTC had hit a new record high sparked an influx of interest from retailers in the benchmark cryptocurrency as news outlets around the world reported the milestone.

Bitcoin was trending on Twitter during the strong ATH surge, with many influential figures and ordinary people expressing their admiration for this grand achievement.

FOMO has also extended to institutional players who are increasingly interested in the digital asset class as a viable alternative to gold.

As Bitcoin soared to new heights, global investment firm AllianceBernstein published a research report acknowledging that the world’s leading cryptocurrency plays a role in asset allocation.

Inigo Fraser Jenkins, co-head of portfolio strategy at Bernstein Research, pointed out that Bitcoin should play a role in investor portfolios despite the firm’s earlier concerns about the class of digital assets.

The latest bitcoin trap?

The price movement in the bitcoin market is so fast, as buyer pressure from the latest FOMO grows, and the world is learning about new clashes with ATH profiting from large crypto -holders.

After a new price record was set yesterday, BTC plummeted in a matter of hours, cutting the maximum price of coins by more than $1,500.

But this bear trap that drove down the cost is fundamentally healthy, as it has updated the mood and shaken out long positions with excessive leverage. Thus, the rejection of recent ATH says that in the near future a value of 20,000$ will be reached.