Bitcoin price recorded a significant breakout above 2019 highs, strengthening the bullish outlook for the premier cryptocurrency.
New Highs for Bitcoin
The rise and fall of the 2017 bull run happened in the blink of an eye.
There were few notable support and resistance levels established for future reference, except for an all-time value of $19,660 on Kraken and $19,891 on Coinbase.
In June 2019, BTC attempted to take out the all-time high but fell short below $14,000.
Since then, levels around $14,000 has been the benchmark for the bulls. Today’s breakout marks an important milestone, clearing the path towards new all-time highs.
The price surge also coincides with the 12th anniversary of Bitcoin’s whitepaper, released on Oct. 31, 2008.
The BTC futures market for perpetual swap contracts is neutrally positioned between the bulls and the bears.
Perpetual swaps are exclusive futures contracts for cryptocurrencies which comes without an expiration. The contracts are rolled over to the next period—usually within a day—after payment of a funding rate.
On the Chicago Mercantile Exchange (CME), Bitcoin recorded its second-highest monthly closing with a 27.5% gain in October. The highest price of the futures contract extending until March 2021 is $14,105, indicating only a slightly bullish inclination.
The low funding rate and small bullish inclination on CME indicate a lack of euphoria, which is good for Bitcoin.
Furthermore, the total balance on crypto exchanges also reached a two-year low. This is a positive signal as Bitcoin held on exchanges is more likely to be sold against the ones held in self-custody.
Hence, organic growth in Bitcoin points to further upside. However, traders can expect a lot of volatility around $14,000 as it marks a critical level for the alpha cryptocurrency.