Why hasn’t the Bitcoin price on Coinbase reached a new all-time high?

Bitcoin prices hit new highs on multiple exchanges, but have yet to break their all-time highs from December 2017 on Coinbase.

Market News

On November 30, the Bitcoin (BTC) price reached $19,873 on Coinbase, surpassing $19,000 in an unexpected surge. While many in the cryptocurrency space were celebrating Bitcoin’s new all-time high, the rally didn’t end there.

On Coinbase, the price of Bitcoin peaked at $19,891 in December 2017. Since Coinbase has been the largest exchange in the United States over the past few years, its all-time high price is particularly significant.

BTC/USD monthly chart from Coinbase. Source: TradingView

Furthermore, top global exchanges like Binance were also launched in mid-2017. One could argue that exchanges founded around 2012 have greater significance when looking at historical price data. To date, Coinbase remains one of the main exchanges used by retail investors.

The historical highs of Bitcoin prices on different exchanges are different

2017 was a turbulent time for cryptocurrencies. When Bitcoin hit an all-time high, its price fluctuated by 30% to 50% in a week due to the lack of liquidity in the cryptocurrency trading market.

Currently, there is a nearly $300 difference between the record highs on the two exchanges. For example, on Kraken and Bitstamp, the peak price of Bitcoin was $19,660 and $19,666, respectively. Yesterday, the price of Bitcoin hit a new all-time high on both exchanges.

On Binance and Huobi, the highest prices of Bitcoin were $19,799 and $19,867, respectively, both of which were also reached on November 30.

At the time of writing, Bitcoin has yet to hit new all-time highs on Bitfinex, Coinbase, and Gemini, three exchanges also known as “whale exchanges” for their high liquidity.

In 2017, Coinbase was the leading exchange by trading volume, and in the eyes of many traders, seeing the price of Bitcoin on Coinbase surpass its previous all-time high would be further confirmation that the bull run has officially begun.

For many traders, $20,000 is the barrier that needs to be broken as it would officially put the top digital asset at a new all-time high.

An anonymous trader named “Bitcoin Jack” pointed out that Bitfinex is the most liquid exchange in this round of rally. Therefore, considering that the historical highs of Gemini and Coinbase are close to Bitfinex, $19,873 is an accurate historical high. He said:

“Be careful because liquidity and open interest are impacted on most exchanges. This means that until liquidity is replenished, the amount of liquidity and open interest will be relatively low. Bitfinex is the king of liquidity.”

Where will the Bitcoin price go next?

On-chain analysts including CryptoQuant CEO Ki Young Ju predicted that whales will attempt to push Bitcoin beyond its all-time high and exert massive selling pressure.

As Bitcoin neared its all-time high on Coinbase, the sudden sell-off saw Bitcoin fall to as low as $18,998 within two hours.

Open interest in the futures market has taken a hit and order books on exchanges have been hampered following the surge in volatility and whale-induced selling.

After Bitcoin’s first attempt to break out of its all-time high, two scenarios are likely to play out in the short term.

First, the Asian market is likely to continue this momentum in the early trading hours, which could prompt another increase in buyer demand.

Secondly, Bitcoin could consolidate below its all-time high of $19,873, possibly between $19,000 and $19,873. This is the most ideal scenario for Bitcoin to achieve a sustained rally, as it would prevent the derivatives market from overheating.