Bitcoin has just powered up to its highest price since Jan. 8, 2018, knocking on the door of $16,000 as FOMO grips the markets once again.
In a move upward that has added more than 12% over the past 24 hours, Bitcoin prices touched their highest levels in 33 months, reaching $15,980 during early trading in Asia today on Nov. 6, according to Tradingview.com.
The $16,000 level may form resistance since there were two weekly closes at $16,100 in early January 2018, so if this week’s candle can hold on to these levels, there could be a push higher toward that elusive all-time high. Chart patterns are currently reminiscent of those in late November 2017 when BTC made a rapid push from $7,000 to top $16,000 in just three weeks.
Analysts have noted that the price of Bitcoin is now 80% of its all-time high, the closest it has ever been to full recovery, which has only taken 12 days on average from these levels to ATH historically.
On the flip side, traders may start to take some profit here, which could result in a pullback.
BOOM! taken partial profit on $btc longs
— Benjamin Bluntz (@SmartContracter) November 6, 2020
also interesting to note btc fear and greed index just spiked to extrem greed and 90.
i am comfortable taking some profit off the table here and waiting to load more lowerhttps://t.co/NjdNOyMkov pic.twitter.com/pZJmOJVCqg
The Fear and Greed Index is currently cranked over into the “extreme greed” zone at 90. The last time it was this high was in June 2019, when it reached 92 as Bitcoin powered to its highest price for that year at just under $14,000.
Experienced investors such as billionaire and former hedge fund manager Mike Novogratz advised against emotion-based selling in a recent tweet.
“The hardest thing to do in a bull market is to sit. My pal Paul Jones calls it the ‘pain of the gain.’ This is a $BTC bull market. Your job is to sit on your hands and lock away your phone.”
The U.S. election results may have been the catalyst for this week’s rally as Joe Biden extends his lead over Donald Trump with the counting almost concluded. At the time of press, Biden was leading by 264 to 214 in the race to 270, with just five states left to go. Square has also just reported record-breaking revenue and profit from Bitcoin sales on its Cash App.