Key Points

• U.S. monetary policy stance spurs bitcoin bulls
• Mixed bag of bullish fundamentals

Bitcoin; 4 Hour Chart

Yesterday the primary crypto currency cleared the coveted psychological resistance level at $20,000. Bitcoin initiated another leg up above the $20,000 price level, as the bulls seized control in this uncharted territory where every price increase was an all-time high. With high levels of volatility back in the market Bitcoin is yet to have a price correction and is trading near $24,000 price level at the time of writing. It also worth noting that as of Tuesday midday most, if not all the BTC holders in the world could say they had made a profit.

They are a lot of fundamentals that might explain this impressive bullish run. Lately as big institutions like PayPal and Square began to buy Bitcoin there has been a token shortage caused by institutions appetite, Bitcoin’s own algorithm lowered the supply by 50%, and the markets could be feeling the effects. There are also new products oriented to Bitcoin investments that have been tailored by investments funds as of late.

As it stands the BTC bulls can find their support at $20,000 as all price levels above that level await to be tested. Ethereum exploded also yesterday and finally cleared the yearly high it had registered on the 2^nd of December. Immediate support for Ethereum in the event of a price breakdown is at $620 followed by $600 and on the upside immediate resistance is at $700.

Most crypto assets mimicked bitcoins price movement with a handful even outperforming bitcoin basing on the last 24 hours alone. Ripple’s (XRP) surged an eye watering 26% to reach $0.566 after a heavy sell off that started on Saturday following the Spark (FLR) airdrop snapshot. Stellar’s (XLM) token, has also pumped harder with an 18% move on the day taking it to $0.189.