It’s been boring bitcoin so far this week, with ether making a profit for traders in a crypto market, which generally still indicates a push.
- Bitcoin (BTC) trades around $ 55,502 from 21:00 UTC (16:00 ET). By 1.9% over the previous 24 hours.
- Bitcoin 24-Hour Range: $ 54,565- $ 57,043 (CoinDesk 20)
- BTC close to the moving average of 10 hours and 50 hours on the hourly chart, a sideways signal for market technicians.
The price of bitcoin has changed little over the past 24 hours, despite the notorious volatility of the asset that caused the spot market to fluctuate from $ 54,565 to $ 57,043 during the session, according to CoinDesk 20 price data.
Nevertheless, BTC mostly stayed above $ 55,000 for almost a month. According to CoinDesk 20’s historical data, the last time bitcoin closed below the level was on March 26th.
Since the beginning of April, bitcoin’s dominance, a measure of the asset against the broader crypto market, as calculated by the trading company TradingView, has declined. It has been down almost 10% since April 1, and bitcoin is currently 51% at press time, about half the market. At the beginning of 2021, the figure was more than 70%.
“Traders are looking for opportunities elsewhere,” notes David Russell, VP of Market Intelligence at the brokerage firm TradeStation Group. That is what is apparently happening now. It is not clumsy, but a possible sign of confidence in space. ”
Less bullish bitcoin action after the excitement of the direct listing of Coinbase is not a surprise to some, with prices not reaching the top of $ 64,829. 14 reached 14 April. “As expected, we saw the April 14 ‘Coinbase top’ that we were positioning for it sold in a downturn over the weekend,” the quantitative trading firm QCP Capital noted in an investor letter on Wednesday.
A week later, traders are looking at other markets to play into. Volumes on large place exchanges are much lower than average on Wednesday, below $ 3 billion on the eight major exchanges followed by CoinDesk 20.
TradeStation’s Russell told CoinDesk that inflation in US dollars will continue to be a major driver of investment in cryptocurrencies, and that the case for cryptocurrencies still exists. According to data collector Inflation Tool, the value of the greenback has declined in purchasing power over the past decade, so that in 2021 it will cost $ 118 to pay for something that would cost $ 100 in 2011.
“Procter & Gamble raises prices and the [Federal Reserve] does not raise interest rates. “In the economy, signs of inflation are increasing,” Russell added. “Inflation and scarcity could emerge as new drivers for the crypto-space, especially with a Fed meeting next week.”
Read more: During the latest Bitcoin crash, ‘Tether Premium’ shows where money is going
Ether bullish on bitcoin
Ether (ETH), the second-largest cryptocurrency by market capitalization, was higher on Wednesday, trading around $ 2,425 and rising 4.2% in 24 hours from 21:00 UTC (16:00 ET).
While the price of bitcoin is mostly stagnant this week, ether is shooting up. A good measure to compare the world’s oldest cryptocurrency to ether is by looking at charts on the ETH / BTC pair, available on most major currency exchanges.
If the pair gets clumsy on the cards, it means traders are selling bitcoin for ether, which is currently the case.
The ETH / BTC became bullish on Tuesday, with the price now well above the 10-day and 50-day moving averages on the hourly chart; so far today it is more than 5% on Coinbase.
“It’s interesting to note the current ETH / BTC ratio that we’re back to the levels last seen at the beginning of February,” said Andrew Tu, CEO of quantitative trading firm Efficient Frontier.
‘In February, we saw this top position at 0.046 BTC. “This is the level we need to look at to see if it breaks out of that resistance,” Tu added. As of press time, ETH / BTC is trading at 0.043 BTC on Coinbase.
Nick Mancini, research analyst at crypto-sentiment analysis firm Trade The Chain, told CoinDesk a breakthrough in bitcoin price performance could cause ETH and other crypto markets to see red. ‘If bitcoin’s bullish breaks out of the current trend, we’ll probably have ETH and [altcoins] take a small hit. ‘
Read more: Mike Novogratz’s Galaxy Digital says in talks to buy BitGo
Other markets
Digital assets on the CoinDesk 20 are mostly higher on Wednesday. Notable winners from 21:00 UTC (16:00 ET):
- Oil fell 2.1%. Price per barrel West Texas Intermediate Crude Oil: $ 61.04.
- Gold was 0.90% in green and $ 1,794 at press time.
- Silver wins, up 2.9% and $ 26.57.
- US Treasury yields for ten years fell to 1,554 on Wednesday and to 0.22% in the red.
