The higher-than-average volume, even over the past month, is helping push up bitcoin’s price, at a time when traders are rapidly plowing into ether futures to open in 2021.
- Bitcoin (BTC) trades around $ 33,987 from 21:00 UTC (16:00 ET). Increased 8.9% in the last 24 hours.
- Bitcoin 24-Hour Series: $ 29,986- $ 34,220 (CoinDesk 20)
- BTC is well above its moving averages of 10 hours and 50 hours on the hourly chart, a bullish signal for market technicians.
Bitcoin’s price rose on Tuesday after a four-hour sell-off was reversed around 06:00 UTC (01:00 ET). This resulted in a steady increase of up to $ 34,220 from press time.
Read more: Bitcoin jumps back to $ 31,000 after Monday’s fall
‘Bitcoin has expanded its already strongly rising trend to new overall highs, ”said Katie Stockton, a technical analyst at Fairlead Strategies. “The signs of exhaustion that appeared in December were picked up by a short consolidation phase, and there are no active overbought ‘sell’ signals.”
So far, the oldest cryptocurrency in the five days of 2021 is more than 16%.
Stockton still sees ‘support’, the price floor where traders buy, much lower than the current spot price.
“The initial support is less than $ 25,000, indicating continued daily volatility,” she said. Since December 31, bitcoin’s realized volatility has increased again, from 55.5% to 63.3% on Monday, a rise that is not entirely unusual, but still something that traders follow.
“On a technical basis, things have been bought over for a while,” said Andrew Tu, CEO of quantum trading firm Efficient Frontier. “The overall trend is still upwards and it seems unlikely that it will change, although the pace may not have been as it was during the holiday season.”
Spot bitcoin volumes look pretty robust; Monday was the day with the highest volume on the eight CoinDesk 20 exchanges in the past month, with more than $ 6.6 billion. Tuesday’s spot volume also looks healthy at $ 4.2 billion at press time. Over the past month, volumes have averaged $ 2.3 billion per day.
“If bitcoin continues to rise at the current rate, I believe we could see a price of $ 54,000 by Valentine’s Day,” said Nicholas Pelecanos, head of the NEM. “We could see a higher price than that by the end of the first quarter; There’s also $ 74,000 on my radar. ”
Read more: JPMorgan predicts that Bitcoin price may rise more than $ 146K in the long run
However, Pelecanos still foresees an eventual retreat from the high predicted prices. “I have the sense that a withdrawal of $ 54,000 would allow the bitcoin price to consolidate around $ 35,000,” Pelecanos said.
It may be hard to remember, but less than a year ago, bitcoin hit a low of $ 3,867 in the traditional and crypto markets in 2020, according to CoinDesk 20 data.
“Based on previous cycles, we could be in extreme anguish for a year or so,” Pelecanos said. ‘With all cycles, the accident comes from the madness of the crowd. There will be no catalyst news release, but buyers will just run out.
Ether term contract boiling hot until 2021
Ether (ETH), the second-largest market-capitalized cryptocurrency, rose Tuesday, trading at about $ 1,095 and rising 7.3% within 24 hours from 21:00 UTC (16:00 ET).
Read more: As the Bitcoin Rally Gets Quiet, DeFi Remains Astonishing
The ether futures market continues to hold staggering gains in the first trading week of 2021. Since Sunday, ether futures (OI) have grown from $ 350 million to $ 2.95 billion, with Binance by far the leading $ 734 million in open interest alone. .
According to Vishal Shah, founder of the derivative venue, Alpha5, the record-breaking interest could easily decline. “It’s just leverage. ‘It clears itself a lot when funding gets high and the market is looking for a story as soon as it rushes forward,’ he told CoinDesk.
Brian Mosoff, CEO of investment firm Ether Capital, said ether’s spot price still has room to grow, and the growth of futures contracts is a sign of that.
“ETH is still among the highest point of all time, and many believe that all the positive news in the last half of 2020 still has room to grow,” Mosoff said. ‘Ether futures are at a peak as market sentiment has changed drastically over the past few months. I would like to attribute this to the successful launch of ETH2, macro conditions that aim for alternative asset classes to hedge the pending inflation and a robust ecosystem. ”
Other markets
Digital assets on the CoinDesk 20 are mostly green. Notable winners from 21:00 UTC (16:00 ET):
- Oil rose by 5.6%. Price per barrel West Texas Intermediate crude: $ 49.98.
- Gold was up 0.32% in green and $ 1,948 at press time.
- The U.S. Treasury yield rate of ten years rose Tuesday to 0.948 and in the green to 3.8%.
