Despite the negative trend throughout yesterday, Bitcoin started today with a small upward movement, not giving any clear signals yet. Ethereum and other altcoins seem set to follow the lead of the first cryptocurrency.
Bitcoin has been falling steadily for the past day, encouraging several altcoins, which had performed well before, to follow a similar malicious behaviour. This morning, however, started with a slight positive rise.
Who knows, perhaps this price rebound is a harbinger of a new attempt by the first cryptocurrency to break out above the $50,000 resistance. At this stage, the price has touched the top of the old trading range, now acting as a support. If it holds, then BTC will be back to retest the latest boundaries. If not, we will witness a spectacular dump with landings at $40,000, $35,000, $32,000.
Michael Saylor, head of Microstrategy and what he calls himself a ‘Bitcoin bull’ has long turned his Twitter page into a collection of quotes dedicated to the first cryptocurrency. Yesterday, his company bought almost 4,000 new BTC, at an average price close to $45,000, for a total of about $177 million (~£129 million).
At last, Sailor has thought about the fact that actions speak much louder than words. Hopefully this will add positivity to the market.
The Fear and Greed Index has retreated into “greed” area. For us this means a certain number of people have emerged in the market, escaping from the sweet captivity of euphoric sentiment. The growing number of naysayers, however, is unlikely to have a positive impact on the momentum of both the first cryptocurrency and the portion of altcoins that are following it around like newborn ducklings. Let’s hope the market does continue its ascent, otherwise preachers of the Stock-2-Flow model, such as PlanB (BTC price movement analysis focused on the asset’s scarcity) will have to seriously rework their own charts.
This time, Ethereum failed to find the strength not to succumb to the pernicious habit of repeating everything after its older sibling, Bitcoin. The price of the asset returned to the trading range marked in white and hit the dynamic resistance within its boundaries.
In general, the presence of such an obstacle indicates the potential for good growth, in case the asset overcomes it. But if not, ETH will continue moving within the aforementioned trading channel, and, in case of a support retest, we risk returning to levels close to $2,000.
Altcoins from CoinMarketCap’s top 10 cryptocurrencies are blushing with shame. Unable to resist the power of BTC, some of them have already started to sneak up to solid lows.
If you’re a hodler or a spot trader, that’s okay. You can always wait it out, and then skim the well-deserved cream off your assets. But if you’re a trader who dabbles in margin trading, especially if you have little understanding of it, you’d better lock in your losses. Otherwise, it may be too late. And if the point of no return has already been passed, top up the collateral and push the liquidation as far away as possible with your deposit. Unless BTC suddenly remembers that it needs to go to the top and gets back on the lift, the market could be in for a thrilling rollercoaster ride.
The top gainer of the day can safely be called the altcoin AVAX. Not only has it been rising for a few weeks, but it managed to bring its holders more than 20% return for the last day and more than 140% for the week.
AVAX has gone from $9.29 to today’s $54.20, which is a near six-fold increase in investors’ deposits since it began its remarkable ascent.
The loser of CoinMarketCap’s list of top 100 altcoins is Telcoin (TEL). Having encountered a resistance, which is the boundary of the trading channel, this asset fell for the provocations of Bitcoin and lost more than 11% in value, even despite the total weekly growth of close to 30%.
With crypto market sentiment shifting towards “greed”, the Bitcoin dynamics remain elusive. Will the incipient scepticism take root and send the BTC price into a dramatic plunge, or could the breakout of the $50,000 mark trigger a rally, driving bull market adherents into ecstasy? Let’s see what the future holds.
Subscribe to our daily and weekly newsletter service to receive a digest of the latest news in the cryptosphere and never miss out on any of the Cointribune's highlights!
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$23,231.61||-0.41%|
|ETHEREUM (ETHUSD) Ξ||$1,717.89||-1.1%|
|IMM. US (REIT)||$2,552.57||0.23%|