On December 16, Bitcoin (BTC) made headlines by soaring above the $7,100 mark, hitting a fresh high of $7,145 in the early afternoon, according to data from Coin360. This move seems to align with a recent trend where Bitcoin has been frequently revisiting gaps left in the futures market.
The Great Bitcoin Gap: What’s It All About?
For those who might be scratching their heads, let’s break this down: a ‘gap’ in futures refers to the difference in prices between when the futures market closes and opens. In Bitcoin’s case, a recent gap was left between the closing level of $7,120 and the opening level of $7,265. Naturally, this set off a mini-rush as traders speculated on Bitcoin’s moves upward.
Market Sentiment: Cautiously Optimistic or Just Cautious?
Despite the recent uptick, analysts remain divided. There’s a air of caution as many predict that the bullish momentum might not last. Cointelegraph’s own market analyst, filbfilb, remains optimistic, indicating that while he’s looking to jump back into cash once the CME gap fills, he has noted a downward trend that’s been consistent for six months.
What to Watch for in 2020
With Bitcoin’s block reward halving just around the corner in May, many believe current price levels might be wise for accumulation before any potential spikes. After all, nothing says ‘invest in me’ quite like a significant event that could impact supply and demand.
Altcoins: The Red Sea of Cryptocurrency
Meanwhile, the altcoin market didn’t enjoy the same luck. Monday saw the majority of the top twenty altcoins take a dip into the red. Ether (ETH) managed to hold its ground, seeing only a minor decrease of 0.1%, trading at $143 at press time. However, Cosmos (ATOM) took a hit, plummeting 5.2% to settle at $4.32.
Is XRP Becoming the Wallflower?
xXRP isn’t faring much better either, falling about 1.5% to just over $0.21. With an overall cryptocurrency market cap languishing at $194.7 billion, Bitcoin continues to dominate, holding a solid 66.6% market share. So, it looks like while Bitcoin might still be the life of the party, the altcoins are a bit more subdued.
Conclusion: The Wait Continues
In the turbulent world of cryptocurrency, the winds are often unpredictable. While Bitcoin’s recent rise generates excitement, both investors and casual observers alike may need to brace themselves for a rollercoaster ride ahead. Whether this upward trend stabilizes or the market heads south remains to be seen, but one thing’s for sure – it’s never boring!
