Bitcoin unstoppable as the bulls break through the $13,000 level

Posted Jun 26, 2019 by Ken Hanly
After opening below $12,000 bitcoin (BTC) today not only broke through that level but kept on going far past $13,000 and even past $13,800 as the price just keeps climbing.
Bitcoin  the most widely known cryptocurrency  has seen wild swings in value that have made people c...
Bitcoin, the most widely known cryptocurrency, has seen wild swings in value that have made people cautious about blockchain-based digital money
Godbole's analysis
Omkar Godbole published an analysis of the price movement of bitcoin (BTC) earlier today at 11:19 UTC on CoinDesk. Godbole says that the way BTC's price is moving reminds him of the market frenzy seen a year and a half ago when the price ended up near $20,000 only to suffer huge loses afterwards.
On Bitstamp earlier today the value of BTC rose to a 17-month high of $12,936. This was up a humongous $3,900 from the $9,036 level of just a week ago.
Mayer multiple very high
The measurement for Bitcoin's historical price shifts, the Mayer multiple, can be found here as well as an explanation. It recently hit 2.42 a level last reached in early January of 2018. A recent article explains: "The Mayer multiple essentially quantifies the spread between the price and the 200-day MA. An above-1.0 ratio indicates BTC is in bull market territory above the 200-day MA, while a reading below one implies the cryptocurrency is in a bear market below the 200-day MA." A reading above 2.4 could indicate a speculative temporary bubble. Higher prices attract more bids and this leads to further advances.
Chart analysis
Way back in 2013 on March 4, BTC was trading at just $36,00 with the Mayer multiple above 2.4. This represented a gain of 176 percent over lows near $13 back in December of 2012. Bitcoin rose more than 600 percent to $259 just in the next four weeks but then it fell way back to $45 on April 12.
Something similar happened after December 1 of 2018 when the Mayer multiple rose above 2.4 percent. The price of bitcoin rose from $11,000 to near $20,000 its all time high but then fell back to $12,000 by December 22.
If history is a guide then we could be again in a speculative bubble as bidders jump in to take advantage of the rising prices. It remains to be seen if the bubble continues up to or past $20,000 or breaks before that.
As of the time of Godbole's posting bitcoin had dropped somewhat to $12,521 but that was still a ten percent gain over 24 hours. The Mayer multiple is at 2.40. The pull back could show signs of bullish exhaustion.
The hourly chart shows that BTC created a doji candle with a long upper shadow earlier today. The doji candle is a sign of bull indecision or exhaustion. This is backed by the highest sell volume since June 6. According to Alex Krueger a technical and fundamental analyst such candles often mark a local top.
The could be a pullback to the support level of $11,000 especially as a widely followed long-term indicator shows overbought conditions.
The weekly relative strength index (RSI)
Currently the 14-week relative strength index is hovering around 81.00 the highest it has been since mid-Decemberj 2017.
The case for a minor pullback looks strong. However, the as long as the price stays above the May 31 high of $9,097 the overall outlook will stay bullish. If the Mayer multiple rises above the 2.40 value the bubble could continue and test the all time high of around $20,000. As seen on the appended video some analysts see bitcoin going to great heights again.
Present situation
24 hours ago BTC opened at $11,742 according to CoinDesk data. Its low has only been $11,727 since then but the high zoomed up as far as $13,879. Even at 19:00 Central Daylight Time bitcoin was trading at $12,851 up $1,109 on the open. Over a 9 percent gain. The overall altcoin market of the twenty top coins is mixed. The present price of bitcoin and the top 20 altcoins can be found here.