Is it November 2013 all over again? Crypto markets on fire, Bitcoin soars past $450 to 8-week high

The crypto markets are ablaze today, continuing their biggest winning streak since the May rally. Bitcoin (BTC/USD) climbed as high

The crypto markets are ablaze today, continuing their biggest winning streak since the May rally.

Bitcoin (BTC/USD) climbed as high as $454 on BTC-e, a gain of 18% from 24h ago when we were pondering if BTC has the strength to overcome the $380’s. At its peak, BTC had gained 42% since bottoming at $318 just over a week ago.

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BTC had not beaten $400 in nearly a month. It had not traded this high in nearly 2 months. It has since fallen sharply off its peak, now trading at $425.

The rally came unexpected, and no particularly glamorous developments have materialized that would explain it. The slope of ascent also increased suddenly, as opposed to a gradual acceleration. When setting out for $350 96h ago, there was a noticeable step up in volume, which peaked at 3700 BTC ($1.5 million) an hour 12h ago.

BTC/USD, Nov 13

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It is likely that a good part of the buying came from traders/bots jumping on the bandwagon once the rally was in progress, expecting to ride the wave as more traders piled in. This, as opposed to some abnormally large and uncontrolled buy orders.

The sharp drop during the past 4 hours may just be a normal retracement during these types of rallies- or may be the start of traders racing to protect their quickly earned profits. The coming 24h will give a better clue.

Litecoin finally got past $4 for the first time in a month, rising as much as 16%- roughly in line with BTC’s gains. It is currently trading at $4 even.

Counterparty has also extended its multifold gains, rising by over 50% to easily set an all-time record. News of its recreating Ethereum on Bitcoin has generated much excitement about its future potential.

All of the top 15 digital currencies, as ranked by market cap, are trading higher today, with several posting double-digit gains.

The recent winning streak may arouse nostalgia of the euphoric rise during November one year ago- it may have even been in the back of the minds of hyped traders. Differences abound, however, and traders ought to be cautious in getting caught in a familiar trap seen during the most recent rallies.

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