December 1st was an important day for the Bitcoin community, given the price managed to briefly break above the 2017 all-time high. Even though the market did not move impulsively above it, this was an indication of strong momentum, even after multiple weeks of consecutive buying. Although there are signs investors are rotating into altcoins, BTC continues to be a very popular token and we would like to talk about what the new all-time means.
# Major bullish technical development
From a technical standpoint, even managing to reach the 2017 high is a major achievement for Bitcoin, considering back in March it was trading around $4,000. Technical developments are what matter now and a new all-time continues to reaffirm that the order flow is heavily tilted towards the buy side. Corrective moves should not be ruled out, but now the probability for a continuation higher has increased substantially. If the price manages to close above the 2017 high on a daily basis, that will be an indication buyers want to push the market even higher.
# Elevated buying appetite
Ultra-low interest rates for fiat currencies and massive stimulation across the world had made investors regard Bitcoin as one of the safe havens and a store of value. With the diminishing purchasing power of traditional money, investors are eager to sell cash and buy assets. This all creates an elevated buying appetite that still does not show signs of abating.
The price is a key indicator of how market participants are treating Bitcoin and for now, there no single piece of evidence suggesting things might take a turn to the downside. Pitfalls will very like occur along the way but until we have bearish confirmation, the bulls are the most favored.
# Favorable conditions for long-term buyers
It turns out that buy-and-hold crypto strategies had been the real winners of the Bitcoin rally and with prospects not yet deteriorating, those who bought at cheaper levels, have the ability to manage their positions without seeing losses. High volatility continues to be normal in the crypto space, but after consistent buying since September, long-term buyers found little to worry about.
Short-term weakness emerged around 2017 high, but buyers don’t seem to lose control for now. A longer corrective move shouldn’t be ruled out, despite favorable seasonality during December. What do you think about the new all-time high in Bitcoin? Do you agree that it could bring more positive developments as the price action unfolds?
