Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin Hits Record High

By MarketPulse (Jeffrey Halley)CryptocurrencyNov 27, 2020 04:28AM ET
www.investing.com/analysis/bitcoin-hits-record-high-200546047
Bitcoin Hits Record High
By MarketPulse (Jeffrey Halley)   |  Nov 27, 2020 04:28AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

One “financial market,” if you can call it that, that did see some emotional volatility overnight, was bitcoin. Having touched a new high of USD9,490.00 on Tuesday, the overnight session saw the digital currencies fortunes rapidly reverse. Bitcoin fell USD3,500.00 at one stage (yes you are reading that correctly), finishing the day 8.40% lower at USD17,160.00.

I had previously warned about the Dutch tulip mania afflicting the FOMO get-rich-quick herd behind bitcoin’s meteoric rise in November. Given the dollar index is testing 4-month lows today at 92.00, the overnight price action makes a mockery of bitcoin as a hedge against US Dollar debasement. Nor do I buy into the new flows of “institutional money” into bitcoin. A financial asset that regularly has USD1,000.00 to USD1,500.00 a day ranges is no place that any moderately sensible “institution” would be putting investors’ money.

The bitcoin rally in November has been entirely driven by sentiment and not reality. And as with all get-rich-quick schemes, the losers are the ones long when the music stops, and the herd rushes for the exit door all at once. The only reason it even has space in today’s note was because of the extreme moves overnight. A fall through USD16,000.00 should see more FOMO destruction. In the meantime, sensible people should stay away from the hype and wake up and smell the Dutch tulips.

Currency markets remain in a holding pattern

The US holiday torpedoed volatility and volumes on currency markets overnight, with the dollar index falling modestly to support at 92.00. The dollar weakness saw EUR/USD reclaim 1.1900, rising to 1.1920 this morning, and it retains 1.2000 as an initial target. USD/JPY eased to 104.05 but remains stuck in a broader 103.50 to 104.50 range. Long-term support and resistance lie at 103.00 and 105.35, respectively. Brexit nerves saw sterling edge lower to 1.3355, with well-defined resistance at 1.3400 and support at 1.3300. A break of either should see a 100-point move, with a Brexit trade breakthrough likely to see GBP/USD jump to 1.3500 and then 1.3800 in double-quick time.

The commodity currencies trade sideways overnight, consolidating near their recent highs. The AUD/USD continues to completely ignore Australia’s trade travails with China, suggesting the weaker US dollar remains the bigger story. Asian regional currencies are much the same, ranging quietly, but near or at multi-month highs versus the greenback.

As I stated yesterday, currency markets appear to be marshalling their forces for a large directional move. All the evidence suggests that that move will be a broader weakening of the US dollar. In the meantime, patience is required.

Original Post

Bitcoin Hits Record High
 

Related Articles

Bitcoin Hits Record High

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
BTC price reminder
BTCpricereminder Nov 27, 2020 9:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you will stare at the screen with disbelief when it will hit between 50 k and 320 k by the end of 2021. stock to flow is key. Bitcoin is the pin not the bubble. not understanding Bitcoin is very costly in the long term but any price is good to buy long term.buy on the dips and hold. don't daytrade Bitcoin
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email