Yesterday, we were reporting on new heights for Bitcoin over 11,000.
This morning, that excitement continues as the cryptocurrency heads into a ‘parabolic arc,’ cresting near $13,000 this morning!
“On June 22, BTC crossed the $11,000 line in under 24 hours after breaking $10,000,” writes Adrian Zmudzinski at Cointelegraph this morning. “Earlier this week professional trader Peter Brandt also tweeted that Bitcoin’s price is currently taking aim at $100,000 target. According to him, Bitcoin is currently on its fourth parabolic growth phase, and ‘is a market like no other.’”
Ethereum is also up 7%.
Another major benchmark is market dominance, where Bitcoin now enjoys over 60% of the crypto space, as of this week. That’s a mark not seen for months.
Here’s how William Suberg puts it in a companion piece at Cointelegraph:
“The successes have come at the expense of altcoins, which have so far failed to produce similar performance. As a result, BTC dominance of the overall cryptocurrency market cap is now 62% – more than at any time in the past two years … Bitcoin’s market cap now stands at $226 billion out of a total crypto cap of $365 billion.”
The Bitcoin rise isn’t based only on investor sentiment – Suberg, for example, cites “strong … network fundamentals” and an emerging quickening of the hash rates.
However, along with the enthusiasm, there’s a healthy dose of caution.
The parabolic arc in general is a syndrome that analysts look at skeptically.
In other words, with such explosive growth, there often comes a snapback, an elasticity of price movement that will send prices eventually back down.
“When prices arc upward at ever-increasing speed, they form a parabolic curve, which should cause us to feel ever-increasing caution,” wrote Carl Swenlin in a cautionary essay back in 2015. “With parabolic moves we never know when the final top will arrive because of the frenzy of buying driving the move, but we know that vertical moves cannot be sustained, and ultimately we can expect that the parabolic will collapse, with prices falling as quickly as they advanced.”
Looking purely at the BTC chart, we can see that investors are making big moves in Bitcoin, but it’s logical to expect some correction at some point.
With that in mind, some are arguing that Bitcoin is ‘fairly valued’ at around $11,000 based on various types of analysis.
That’s big news for today’s “hodlers” – those who bought in down around $9,000, or $7,000, or (gasp) $4,000!
Keep an eye on moving values.