Bitcoin January candle is looking like a “rocket ship” and gains surpass S&P 500’s after only 30 days

Bitcoin has been in a volatile uptrend for weeks; this has allowed BTC to set a significant gap between the recent lows of $ 6,400 and the current price of $ 9,500.

This upward momentum has caused a growing market structure, leaving some analysts and investors excited, and even define BTC’s macro technical situation as a ‘rocket ship.’

However, it’s important to note that this excitement had left other analysts tired when the remarkable price drops followed a lot of optimism in history.

Bitcoin set a new high in 2020

At the time of writing, Bitcoin is trading up nearly 2% with the current price of nearly $ 9,500, marks a noticeable increase from the daily low of just over $ 9,000 that appeared shortly after the cryptocurrency was highly volatile.

Bitcoin price today. Source: Coinmarketcap

However, this strong sell-off has been proven to be fleeting, as it was followed by a significant buying pressure that catalyzed upward movement, setting a new high of 2020 at $ 9,550.

Because BTC has not yet faced any sharp declines from recently established highs and today is the monthly closing day, its “January candle looks like a rocketship,” MoonOverlord tweeted.

Bitcoin gains surpassed the S&P 500’s in 2019 after only 30 days

After crowning the most profitable investment in the last decade, Bitcoin continues to delight investors in 2020. The market capitalization of digital assets has increased by about 30% in just the past 30 days.

The S&P 500 achieved a 29% profit throughout the year. 2019 is also one of the best years ever for the US stock market, according to the New York Times.

Anthony Pompliano, partner of Morgan Creek Digital Assets, pointed out the equivalent increase of two markets in very different periods.

Much of the excitement revolved around the upcoming Bitcoin halving. The supply of new coins to the market will decrease from 12.5 to 6.25 from this May.

Many industry analysts are considering upcoming halving as a driver of higher prices. Previous Bitcoin halving events have actually witnessed significant price increases.

One popularly cited study on the effect of halving on scarcity, and in the next bull cycle, the price could reach $ 400,000 / BTC.

Various figures show that it’s not just the figures on Twitter that are growing.
Google searches for the terms “buy Bitcoin” and “Bitcoin halving” are skyrocketing. This usually happens in the previous major bull markets.

Similarly, corporations are investing heavily in mining infrastructure. Bitcoin’s hash rate, a measure of computing power that supports the network, has just hit a new all-time high.

Potential dump?

Bitcoin is still trading significantly below its 2019 high of $ 13,800 and
Many analysts have noted that it is still possible for BTC to see a sharp decline before it has a firm foothold in the five-digit price area.

Analyst Teddy explained that the excitement of BTC investors at the moment might cause trouble for the next trend.

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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