Bitcoin gained on Tuesday despite below-average spot volumes. In the meantime, the price of aether is reaching a record high and the dominance of the Cyrpto is back to the level of February.
Bitcoin (BTC) starts trading at $ 54,840 as of 9:00 PM UTC (4:00 PM ET). 1.4% increase in the last 24 hours.
Bitcoin’s 24-hour range: $ 52,722 to $ 55,261 (CoinDesk 20)
BTC close to the 10-hour moving average and well above the 50-hour moving average on the hourly chart, a bullish signal for market technicians.
Bitcoin price rose to $ 55,261 around 5:00 p.m. GMT, before settling at $ 54,840 at press time.
It is possible that the world’s largest cryptocurrency by market capitalization is higher.
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“A test of the $ 56,000 mark will soon follow and then most likely decline,” said Constantine Kogan, partner at investment firm Wave Financial.
According to CoinDesk 20 data, Bitcoin was last at $ 56,000 on April 20, when it fell from the all-time high of $ 64,829 hit on April 14.
This week’s increase is due to the fact that Bitcoin price fell to $ 47,272 on Sunday.
Stefan Coolican, CFO of investment firm Ether Capital, says dumps and recovery are only part of the crypto market. “I think the weekend sell-off was personally excessive so a rebound makes sense,” said Coolican.
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The spot bitcoin exchange volume for Tuesday was around $ 2.6 billion at press time, compared to the average of the last three months of $ 5.1 billion in which BTC changed hands on a daily basis.
It is possible that bigger players are in the market this week, with retail and new investors remaining cautious due to the infamous gyration of crypto. This resulted in lower volumes on Tuesday.
“Bitcoin is an information asymmetry environment,” said Wave’s Kogan. “A small number in the community are aware of the upcoming price changes, and only a small number of global venues are able to manage these big deals.”
The story goes on
Despite the weakness in volume, a positive cycle of news is affecting the price of Bitcoin, Kogan said.
“JPMorgan is preparing to launch an actively managed Bitcoin fund for high net worth clients,” said Kogan. “Tesla has announced the sale of a part of [its] Bitcoins and profit taking, which is also positive. This helps the uptrend. ”
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The ether price reaches a new high
The second largest cryptocurrency by market cap, Ether (ETH), rose Tuesday, trading at $ 2,631, and rose 5.2% in 24 hours at 9:00 PM UTC (4:00 PM ET).
Ether rose to a record high near $ 2,700 on Tuesday after a strong three-day rally.
The price for Ether, the native cryptocurrency of the Ethereum blockchain, rose to USD 2,683.30 around 16:00 UTC (12:00 PM ET) based on CoinDesk data.
The new high came after three consecutive daily gains totaling 19%. The move extended cryptocurrency’s impressive rally this year. The price of ether has tripled so far in 2021, thanks in part to merchants’ excitement for growth in decentralized finance (DeFi) and non-fungible tokens, both of which use the Ethereum blockchain. By comparison, Bitcoin (BTC) is up 89% this year.
“Ether has raised its head and is outperforming a few more days ago,” said Katie Stockton, technical analyst for consulting firm Fairlead Strategies.
The technical advancement at Ethereum could tempt investors to buy, said Coolican of Ether Capital.
“It’s just more people who understand the value [proposition] of Ethereum and the token accrual model with proof-of-stake and EIP 1559, ”Coolican told CoinDesk. Proof-of-stake is the more efficient form of consensus for cryptocurrency networks that Ethereum is upgrading to, and EIP 1559 is a development proposal aimed at lowering fees on the network.
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On a day when all of the CoinDesk 20’s major assets were available, the meme-centric cryptocurrency Dogecoin (DOGE) struggled to stay in the green.
Wave Financial’s Kogan says interest in DOGE is growing and waning at its own pace. “They’re good at meme making, that’s what I give them. But I’m very skeptical of this doge mania, ”he told CoinDesk. “It can end badly when private investors lose a lot of money. Or rather, when it will happen. ”
The digital assets of CoinDesk 20 are all green on Tuesday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
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Oil rose 2%. Price per barrel of West Texas Intermediate Crude: $ 63.19.
Gold was in the red at 0.27% and at press time at $ 1,776.
Silver is gaining 0.33%, changing hands at $ 26.27.