Connect with us

Blockchain

Market Wrap: Bitcoin Breaks $34K as Ether Futures Interest Jumps $350M in a Day

Bitcoin breaks $34K while ether futures continue to gain steam.

Republished by Plato

Published

on

Higher-than-average spot volume, even for the past month, is helping push bitcoin’s price upward at a time when traders are plowing into ether futures at a quick pace to open 2021.

  • Bitcoin (BTC) trading around $33,987 as of 21:00 UTC (4 p.m. ET). Gaining 8.9% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $29,986-$34,220 (CoinDesk 20)
  • BTC well above its 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.

Bitcoin trading on Bitstamp since Jan. 2.
Source: TradingView

Bitcoin’s price made gains Tuesday after a four-hour sell-off was reversed around 06:00 UTC (1 a.m. ET). That led to a steady climb to as high as $34,220 as of press time. 

Read More: Bitcoin Bounces Back Above $31K After Monday’s Drop

Bitcoin has extended its already-steep uptrend to new all-time highs,” said Katie Stockton, a technical analyst for Fairlead Strategies. “The signs of exhaustion that appeared in December were absorbed via a brief consolidation phase, and there are no active overbought ‘sell’ signals.” 

So far in the five days of 2021, the world’s oldest cryptocurrency is up over 16%.

Spot bitcoin performance on Bitstamp in 2021.
Source: TradingView

Stockton still sees “support,” the price floor where traders step to buy, much lower than the current spot price. 

“Initial support is below $25,000, which hints at a continued day-to-day volatility,” she said. Since Dec. 31, bitcoin’s realized volatility has been creeping back up, from 55.5% to 63.3% Monday, a rise not entirely uncommon of late but nonetheless something traders track.

Bitcoin’s 30-day volatility the past year.
Source: Shuai Hao/CoinDesk Research

“On a technical basis, things have been overbought for a while,” said Andrew Tu, an executive for quant trading firm Efficient Frontier. “The overall trend is still upwards and this seems unlikely to change, though the pace may not be like it was during the holiday season.”

Spot bitcoin volumes are looking quite robust; Monday was the highest-volume day on the eight CoinDesk 20 exchanges in the past month, at over $6.6 billion. Tuesday’s spot volume is also looking healthy, at $4.2 billion as of press time. In the past month, volumes have averaged $2.3 billion per day.

Spot bitcoin volumes on major exchanges the past month.
(Shuai Hao/CoinDesk Research)
Source: CryptoCompare

“If bitcoin continues to rally at its current rate, I believe we could see a price of $54K around Valentine’s Day,” said Nicholas Pelecanos, head of trading for blockchain ecosystem provider NEM. “We could see a higher price than this by the end of Q1; $74K is also on my radar.”

Read More: JPMorgan Predicts Bitcoin Price Could Rise Over $146K in Long Term

However, Pelecanos still envisions an eventual retreat from those lofty forecasted prices. “I have the sense a pull back from $54K would leave the bitcoin price to consolidate around $35K,” Pelecanos said. 

It may be hard to remember but less than a year ago during 2020’s sell-off in traditional and crypto markets, bitcoin hit a low of $3,867, according to CoinDesk 20 data.

Historical spot bitcoin price the past year.
Source: CoinDesk 20

“Based on previous cycles we could be in for a year or so of extreme bullishness,” Pelecanos said. “With all cycles, the crash comes from the madness of the crowd. There won’t be a catalyst news story, the market will just run out of buyers.”

Ether futures boiling hot to open 2021

Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Tuesday, trading around $1,095 and climbing 7.3% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

Read More: As Bitcoin Rally Pauses, DeFi Keeps Astounding

The ether futures market continues to see staggering gains in the first trading week of 2021. Since Sunday, ether futures open interest (OI) on major venues has grown $350 million to $2.95 billion total, with Binance by far leading the way at $734 million in open interest alone.

Ether futures open interest on major derivatives venues.
Source: Skew

The record-high open interest could easily simmer down, according to Vishal Shah, founder of derivatives venue, Alpha5. “It’s just leverage. It wipes itself out a lot when financing gets high and the market is looking for a story once it races ahead,” he told CoinDesk. 

Brian Mosoff, chief executive of investment firm Ether Capital, said ether’s spot price still has room to grow, and the growth of futures is a sign of that. 

“ETH is still below the all-time high, and many believe with all the positive news in the latter half of 2020 it still has room to grow,” Mosoff said. “Ether futures are at an all-time high as the market sentiment has drastically shifted in the last few months. I’d attribute it to the successful launch of ETH2, macro conditions looking to alternative asset classes to hedge pending inflation and a robust ecosystem.”

Other markets

Digital assets on the CoinDesk 20 are mostly green Tuesday. Notable winners as of 21:00 UTC (4:00 p.m. ET):

Notable losers:

Commodities:

  • Oil was up 5.6%. Price per barrel of West Texas Intermediate crude: $49.98.
  • Gold was in the green 0.32% and at $1,948 as of press time.

Treasurys:

  • The 10-year U.S. Treasury bond yield climbed Tuesday jumping to 0.948 and in the green 3.8%.

The CoinDesk 20: The Assets That Matter Most to the Market

Disclosure

Source: https://www.coindesk.com/market-wrap-bitcoin-34k-ether-futures-jump-350m

Blockchain

EOS, BAT, Dogecoin Price Analysis: 16 January

Republished by Plato

Published

on

EOS‘s market noted some bearish presence, with the same likely to push the crypto’s price slightly south towards $2.6. Basic Attention Token appeared to break out of a range backed by significant trading volume, while Dogecoin was in a phase of consolidation and traded sideways on the charts with no strong momentum.

EOS

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: EOS/USDT on TradingView

The RSI floated just under the neutral 50 value, unable to rise above and likely indicative of a downtrend to come. The price, more importantly, flipped the $2.73-level to support recently and attempted a surge towards the next level of resistance at $3.

This session (cyan) saw the market’s bulls drive prices as high as $2.93, but the bears stepped in and pushed the price down to test the support at $2.6. This highlighted a lack of bullish strength.

Their presence in the market is poised to be highlighted once more. It can be expected that EOS would slowly descend towards $2.6 once more. If it does not hold as support, the price could drop to $2.44 in the coming days.

In other news, Arca CIO Jeff Dorman tweeted that EOS could be undervalued due to its massive BTC holdings.

Basic Attention Token [BAT]

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: BAT/USD on TradingView

The range between $0.27 and $0.2 is one that BAT has traded within since late November. On the 6-hour charts, it appeared that BAT was headed for a breakout above this range. The trading volume for the most recent session before press time was extraordinary, pointing towards market conviction.

The MACD formed a bullish crossover and rose above zero to highlight bullish momentum. However, the $0.292-mark continued to be a thorn in the side of bulls and can be expected to stall the rise of BAT’s price.

Another rejection at $0.292 could see BAT tumble sharply back within the range it was trading within.

Dogecoin [DOGE]

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: DOGE/USDT on TradingView

After its explosive move from $0.0045 to $0.01, DOGE spent the past few weeks in a phase of consolidation. Using the swing high and low of this phase for DOGE, and Gann’s rule of eight, some potential levels of support and resistance (yellow) can be plotted on the charts.

It can be seen that DOGE has respected these levels. The Awesome Oscillator showed a lack of definitive momentum in either direction for DOGE.

Source: https://ambcrypto.com/eos-bat-dogecoin-price-analysis-16-january

Continue Reading

Blockchain

Demand for Ethereum hits rooftop, price could quadruple within 90 days

Republished by Plato

Published

on

Upcoming ETH Futures And Increased Interest From Institutional Investors Will See Ethereum Hit $10K - Pundit Predicts

Advertisement &  & 

Bitcoin bulls are calling $50,000 for the next rally. Ethereum bulls are also just as optimistic, as fundamental indicators are looking as promising as technical indicators. These key signals imply that a bullish rally, despite price stagnation is imminent and includes the sky-high demand for Ethereum’s ETH, which analysts claim will unseat supply in the coming weeks. To get the point across, analysts noted how Bitcoin’s price quadrupled within a three months period (November 2020 to January 2021) when demand toppled supply.

In the last 48 hours, Ethereum has sustained losses of 8.5%. The drop in prices was triggered by whale activities, reflected in the exit of ETH worth $2.4 billion from the Bitfinex exchange.

DeFi still remains one of Ethereum’s most promising ventures. At press time, locked in value has hit $23.22 billion. But Ethereum’s DeFi industry is still in its early stages, hence market maturation is still at its beginning state. “The DeFi market is still severely undervalued,” says analyst Joseph Young. Making up a large fraction of the entire digital currency market, he touches on DeFi’s astounding market cap.

“The total market cap of all DeFi tokens (even including Chainlink) is $25.7 billion. XRP and LTC and ADA will result in $31 billion.” 

Decentralized futures, still in the early stages but just as bullish is already processing millions of dollars in daily transactions. Young noted this in a preceding tweet as quoted below ;

“Decentralized futures exchanges on Ethereum are also seeing fast growth. Perpetual Protocol, for instance, is processing $50 million PER DAY.”

Meanwhile, on the technical charts, Ethereum seems to be replenishing its 7 days losses with reverse daily gains of 12% at the time of this report. However, the second most valued digital asset may need more to break above the $1,350 resistance level. Within the last few days, it has become evident that the strong price rejection around said resistance is still ongoing. 

Advertisement &  & 
Demand for Ethereum hits rooftop, price could quadruple within 90 days
ETHUSD Chart By TradingView

Ethereum bulls have been knocked back down on several occasions. And the bearish momentum had successfully managed to suppress ETH to a low of $994. At press time price of $1,209, ETH bulls will need to build enough momentum to retest $1,350 resistance or risk testing $880 support levels.

A bullish price reversal is still being anticipated by analysts who opine that LINK, DOT, and ETH will pioneer the altcoin season.


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/demand-for-ethereum-hits-rooftop-price-could-quadruple-within-90-days/

Continue Reading

Blockchain

Polkadot surpasses XRP to grab the 4th slot

TL; DR Breakdown Polkadot (DOT) is now the 4th largest crypto by market cap XRP could suffer a catastrophic blow if ruled a security The crypto market is shifting again, and this time, the charts are re-arranging as Polkadot moves up by one position. The top 10 largest cryptos (by market cap) have always been […]

Republished by Plato

Published

on

TL; DR Breakdown

  • Polkadot (DOT) is now the 4th largest crypto by market cap
  • XRP could suffer a catastrophic blow if ruled a security

The crypto market is shifting again, and this time, the charts are re-arranging as Polkadot moves up by one position. The top 10 largest cryptos (by market cap) have always been a good point of reference when it comes to market movements. Now, it seems like XRP is getting stripped of its position, a spot now occupied by Polkadot (DOT).

The last few days have been a huge challenge for XRP as it battles the negative effects resulting from the current lawsuit facing its creator company, Ripple. A quick glance at the running market placements reveals that XRP price has been losing ground while other cryptos like Polkadot have been scoring gains each day.

Polkadot (DOT) has been thriving

In the past 7 days, Polkadot has surged by over 64%, putting the price at around $15 – according to information on CoinMarketCap. Over the same period, XRP has dropped by 10% to put the price at around $0.28. As a result, Polkadot has been gaining traction both in popularity and relative acceptance as an interoperability protocol designed to facilitate multi-chain operations. The network uses DOT as its native crypto token which users can use to vote on issues concerning the network’s governance.  

Polkadot surpasses XRP to grab the 4th slot 1
Polkadot

Currently, DOT has posted an impressive Market Cap totaling $13.4 billion as opposed to XRP’s $12.7 billion, effectively making it the 4th largest crypto by market cap. That’s after Tether (3rd place at $24.29 billion), Ethereum (second place at $135.3 billion), and Bitcoin (first place at $681.6 billion).

XRP facing an existential threat

For some years, Ripple has been lobbying to get XRP ratified as a cryptocurrency as opposed to the views of some who see it as a security. These efforts seem to have somehow back-fired as the US SEC moved to file a suit against Ripple and its top management back in December 2020. According to SEC, Ripple has been illegally transacting with XRP, which SEC sees as a security. The accused include Ripple’s CEO Brad Garlinghouse, co-founder and Executive Chairman Chris Larsen, and Ripple Labs itself.

The suit has led to investors like Grayscale ditching XRP. Some crypto exchanges suspending XRP from their trading platforms, while others have moved to delist it altogether. The latest to take action is Kraken.

These developments are in no way in favor of XRP, and they could cause a lasting effect on its market standings. If XRP is ruled a security, it will cease to exist as a crypto and ultimately end its streak as one of the most popular digital tokens backed by the might of a global company.

Continue Reading
Blockchain4 days ago

Ethereum Whale Addresses With Over 10,000 ETH Continue to Grow In Numbers, Price Holds Above $1000

Blockchain4 days ago

‘Crypto is exactly like dot com bubble; Bitcoin, Ethereum can survive it’

Blockchain4 days ago

As Bitcoin Regains Lost Ground, Options Traders Bet on $52K Move By Late January

Blockchain4 days ago

Ethereum Price Analysis: 12 January

Blockchain4 days ago

Shanghai Government Invests $5M in Blockchain Startup Conflux

Blockchain4 days ago

Brian Brooks, Crypto-Friendly OCC Leader, Steps Down

Blockchain4 days ago

Coinbase Custody Lists DeFi Project BarnBridge

Blockchain4 days ago

How the OCC Is Building Crypto America (and Saving Banks From Extinction)

Blockchain3 days ago

SolidX Sues VanEck Over Bitcoin ETF Plagiarism

Blockchain4 days ago

Bitcoin ‘real’ daily trading volume tops $22B as BTC price recovers

Blockchain3 days ago

Trader comforts the market’s traumatized first timers amid falling prices

Blockchain4 days ago

Crypto Community Expects Bitcoin to Surge Amid Biden’s $3 Trillion Stimulus Plan

Blockchain4 days ago

Gensler Said to Be Named SEC Chairman: Reuters

Blockchain4 days ago

Bakkt to Become a Publicly Traded Company worth $2.1 Billion Via New Merger

Blockchain4 days ago

IMVU’s new blockchain-backed stablecoin goes live

Blockchain4 days ago

Is China Poised to Nationalize Alibaba?

Blockchain3 days ago

Uniswap’s growth lead bites back over Yearn Finance’s SushiSwap merger

Blockchain4 days ago

Singapore-based Zipmex closes $6M funding round led by Jump Capital

Blockchain3 days ago

Crypto Lawyer Sees Incoming SEC Chair as a Win for Bitcoin, Not XRP

Blockchain4 days ago

Blockstream expands Liquid Federation, but LBTC adoption remains slow

Trending