Bitcoin Volatility Surges Amid Flirtation With $12,000 Threshold - BLOOMBERG

AUGUST 11, 2020

By Amena Saad 

  • Cryptocurrency’s price swings are the most in about a year
  • Technical gauge suggests that Bitcoin remains overbought         

One of the most alluring aspects of Bitcoin to traders and speculators is back: Volatility.

Price swings by the largest cryptocurrency have reached the highest level in about a year in the past few weeks as the digital asset trades around $12,000. Bitcoin crashed almost $500 in a matter of minutes this morning after reaching that level, only to begin testing that high again.

Bitcoin’s surge presents a bullish development on a technical basis, with its 14-day Relative Strength Index above 70. Assets are considered overbought if the RSI exceeds that level.

“It looks like it wants to test its 2019 highs of $13,800 before it sees a meaningful correction to work off this overbought condition,” said Matt Maley, chief market strategist at Miller Tabak + Co.

Other analysts have set their sights even higher, eyeing Bitcoin’s all-time high of about $20,000 in late 2017 as the main milestone to beat.

“The level of $10,000 has represented a strong psychological barrier for Bitcoin for the last few years. Now that barrier is broken and there are no major levels of resistance on the graph until the all- time high at $20,000,” said Mati Greenspan, founder of Quantum Economics.


This website uses cookies We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you've provided to them or that they've collected from your use of their services
Real Time Analytics