Bitcoin Price Breaches $12,000; IOTA Soars on Internet of Things
- Bitcoin surge pushes market capitalization to a new record.
- IOTA price goes parabolic, up 200% this week.
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Bitcoin (BTC): Breaks the $12,000 Barrier
The Bitcoin rally continues unabated, breaking through the $12,000 barrier overnight, with trading volume hitting in excess of $9 billion in the last 24 hours. While the top two currencies by Bitcoin volume were USD and KRW, another crypto-currency coin, IOTA, also printed record turnover. The latest surge in Bitcoin boosted the total crypto-currency market capitalization to in excess of $373 billion, up from $18 billion at the start of the year.
The chart below shows BTC up for seven days in a row and over 120% higher than the recent low made on November 12. The recent break-out from the upward channel points to further highs but caution is warranted as any breakdown from these levels - and 25%+ falls are commonplace - could see prices quickly back below $10,000 or lower as loose holders exit the market.
Bitcoin Chart: (BTC) Daily Timeframe (August 1 – December 6, 2017)
Altcoin IOTA Continues to Soar on the Internet of Things
The latest altcoin to produce headlines is IOTA, soaring from $0.36 to $5.60 in one month, making it now the fourth-largest altcoin by market cap. The main innovation behind IOTA is Tangle, a new block less distributed ledger which is scalable, lightweight and for the first time ever makes it possible to transfer value without any fees, according to the company’s website. IOTA add that as the Internet of Things keep expanding “the need for interoperability and sharing of resources become a necessity. IOTA enables companies to explore new business-to-business models by making every technological resource a potential service to be traded on an open market in real time with no fees.”
IOTA Chart: (IOTA) Daily Timeframe (November 20 – December 6, 2017)
IG Client Sentiment data show 68.6% of traders are net-long of Bitcoin with the ratio of traders long to short at 2.19 to 1. The number of traders net-long is 7.9% higher than yesterday and 30.2% higher from last week, while the number of traders net-short is 17.7% higher than yesterday and 15.8% higher from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Bitcoin trading bias.
Market Moves/Top 8 Capitalizations – December 6, 2017
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--- Written by Nick Cawley, Analyst.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.