The BTC price continued to rocket higher on Friday in the face of a further decline in the US dollar. The benchmark cryptocurrency broke the $15,500 resistance zone and traded to a new 2020 high at $15,974 on leading spot exchanges.
Bitcoin has now soared from lows of $11,200 seen just a few weeks ago to trade at $15,559 during press time. That uptick marks a 36.5% gain in the span of twenty days, making the digital coin the overall best-performing asset over that time period.
BTCUSD Chart by TradingView
This inspiring rally is attributable to several interesting trends in the Bitcoin market. First of all, there is a large dislocation of prices between the futures market and the spot market.
This market dislocation level, where even some spot markets are lagging other spot markets, was last seen during the highs of 2019. The highly dislocated market seems to be a side effect of OKEx exchange shutting down withdrawals, which forced many investors into stablecoins and Wrapped Bitcoin.
Moreover, the flagship crypto’s ongoing climb higher has prompted investors to liquidate dozens of millions worth of long positions in the past 24 hours alone. Some traders attempted to short the rally to find the parabolic top, but failed as BTC kept on mounting to the upside.
Bitcoin Bulls Still Has Room To Run
Bitcoin’s rapid move to the upside has shocked investors and caused concerns that influential traders and whales will likely liquidate their coins in anticipation of a strong retracement.
However, several on-chain trends counteract the sentiment that BTCUSD is overextended to the upside. Firstly, data shared by analytics firm Glassnode shows that the BTC market can sustainably move higher.
Rafael Schultze-Kraft, CTO Glassnode, shared the chart below indicating that the world’s first cryptocurrency still has room to rally. He explained that the “Relative Unrealized Profit” of BTC is presently far below bubble levels seen in the past.
BTC’s Unrealized Profit Analysis by Schultze-Kraft | Source Glassnode
Another important on-chain trend that could bolster the BTC price is the enormous influx of new users interacting with the blockchain.
As per data from the analytics platform Santiment, the number of addresses interacting with the BTC network reached 1.17 million yesterday. That is the highest mark since Jan. 10, 2018.
ETH Price Shatters Heavy Resistance
Ethereum has gained some significant momentum over the last few hours and has managed to break above several key resistances.
The ETHUSD pair cleared $405 and $410 at the start of its rally on Friday and went on to shoot up 6%, breaking the $420 resistance level. Today’s upward move was so intense that ETH even spiked above $440.
At publication time, the top altcoin is changing hands for $441.7, with the ETH price expected to follow Bitcoin’s surge and surpass $450.
ETHUSD Chart by TradingView