- Bitcoin price is trading in the upper range of the November 2021 supply zone as crypto markets recover.
- BTC could reclaim its high of $69,000, a level last seen in November 2021, with the possibility of an extension to $70,000.
- The market capitalization of the pioneer cryptocurrency has already set a new record, crossing the threshold of $1.3020 billion.
The price of Bitcoin (BTC) is steadily moving towards its 2021 peak, which is just a little bit away as markets show optimism. Trading activity remains extremely high and all signs point to the pioneering cryptocurrency reclaiming its peak.
Also Read: Controversial Crypto Influencer Sees Bitcoin Price Crashing to $45,000, Blames High Interest Rates
Bitcoin is only a few centimeters closer to its maximum price
Bitcoin (BTC) price is trading with a bullish bias, hitting the all-time high of $69,000 as the cryptocurrency markets flash green. While BTC has yet to reclaim its peak price, the pioneer crypto's market cap has already reached a new milestone, surpassing its November 2021 peak of $1.3020 billion.
Optimism in the Bitcoin market has seen BTC overtake Meta Platforms, the parent company of giant social media platform Facebook, in market capitalization metrics. Reports also suggest that BTC continues to dethrone currencies around the world.
Specifically, BTC has recorded a new all-time high in 70% (14 out of 20) of the G20 currencies. However, all eyes remain on its value against the US Dollar (USD).
CNBC “Mad Money” host Jim Cramer attributes this to traders buying BTC as a hedge against fiat currencies.
Amid the bubbling trading activity in the market, the Coinbase exchange crashed again, with users complaining about latency issues and zero balances. However, the platform's customer support has assured users of the safety of their funds.
Also Read: Coinbase exchange drops again as Bitcoin price nears all-time high
Frequently asked questions about Bitcoin, altcoins and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency intended to serve as money. This form of payment cannot be controlled by a single person, group or organization, eliminating the need for third-party involvement in financial transactions.
Altcoins are all cryptocurrencies except Bitcoin, but some also consider Ethereum to be a non-altcoin since the fork occurs from these two cryptocurrencies. If this is true, then Litecoin is the first altcoin to emerge from the Bitcoin protocol and is therefore an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price and whose value is backed by a reserve of the asset they represent. To achieve this, a stablecoin's value is pegged to a commodity or financial instrument such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an entry and exit ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It gives a clear picture of investor interest in Bitcoin. High BTC dominance typically occurs before and during a bull run, where investors resort to investing in relatively stable, large-cap cryptocurrencies such as Bitcoin. A decline in BTC dominance usually means investors are shifting their capital and/or profits into altcoins in search of higher returns, which usually triggers an explosion of altcoin rallies.
Bitcoin price outlook as BTC market cap peaks
Bitcoin price is in the upper mid-range of the November 2021 supply zone between $60,522 and $67,525. If BTC manages to close the candle above the midline of this range at $64,023, it would confirm the continuation of the uptrend.
This could set the tone for the trend to continue as BTC is likely to reclaim the high of $69,000. In an extremely bullish case, the pioneer cryptocurrency could extend its gains to $70,000, marking a new all-time high.
BTC/USDT 1-day chart, BTC market cap 1-day chart
Conversely, profit-taking could cause Bitcoin price to decline, with the supply zone acting as a resistance order block. With such turnout, BTC could reach the psychological mark of $60,000 again.
Also Read: Bitcoin Price Outlook: Will BTC Surge as BlackRock BTC ETF Manages $10 Billion?
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