Bitcoin (BTC) price is trading about 1% lower on the day to extend weekly losses to nearly 7% after the price action corrected sharply lower yesterday.
Bitcoin has been on a roll recently by gaining nearly around 30% in November to trade near the all-time high close to $20,000.
“There’s definitely been a sense of euphoria in markets over the last couple of days … this mostly feels like a reaction to that – over-leveraged markets took one small hit and suffered immensely,” said Joseph Edwards of crypto liquidity provider Enigma Securities.
Analysts believe that the current rally looks more sustainable than the one which yielded an all-time high in December 2017 as it is driven by institutional demand for digital assets.
Moreover, there are rumours that Chinese miners aren’t selling their holdings to cash in due to regulatory crackdown on crypto exchanges.
“Driven by a mix of market structure and strong fundamentals, bitcoin could now be within days of reaching its all-time high. Underlying this bullish price action is the inflation hedge narrative that has captured Wall Street since the immense money printing campaigns undertaken by the Fed earlier this year,” said Nicholas Pelecanos, chief of trading at NEM.
Bitcoin price is now trading below the $17,000 handle again after printing $19,490 on Wednesday, which is a near three year high for the world’s largest cryptocurrency.
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