Ethereum price is nearing a new all-time high with Bitcoin consolidation
Bitcoin (BTC) Continues to trade in a narrow range within a pennant pattern and as the price moves above the 20-day moving average, it is clear that the bulls and the bears are fighting over the direction the digital assets will take.
Information from Cointelegraph Markets And the TradingView It showed that BTC traded in a range of $ 34,955 to $ 37,850 over the weekend, but it appears that traders buying every pullback do so with less conviction.
JP Morgan Research Analyst Nikolaos Banegertzoglou He recently emphasized the importance of a Bitcoin breakout above the $ 40,000 level soon to avoid getting hurt by a migration of “trend-following” investors that may exacerbate last week’s correction.
According to Yves Renno, Head of Trading at Wirex, Bitcoin is in “consolidation above $ 35,500” but Renno still sees a generally positive trend in the market.
Renno also said that the recent correction was actually seen as a buying opportunity for large institutional-sized investors, as evidenced by the increase in the BTC whale population and the “low to medium” mining supply.
Renault said investors should expect to see a “continuous period of high volatility with a positive average trend” in the coming weeks and months based on actions in the derivatives market.
He said:
“Open interest always hits new ATHs, which makes the market more risky because it signals greater liquidation risk during a correction, which means selling collateral, which usually inflates corrections.”
Ether (ETH) Is also looking to show “continued strong price momentum” as Renno sees it, driven by the launch of Eth2 and the launch of the upcoming CME futures contract in February. Eth2 is also expected to provide a boost to DeFi’s economy in general as the ecosystem as a whole will benefit from lower transaction fees and reduced congestion.
Positive developments at the organizational level
The news that next president Joe Biden intends to do so Choose Gary GenslerThe professor who previously taught the blockchain and cryptocurrency course at MIT, as chair of the US Securities and Exchange Commission, has provided the crypto sector with a short-term boost in sentiment.
Bitcoin also received a massive vote of confidence from Stephen Harper, Former Prime Minister of Canada. Harper suggested that there might be a place for Bitcoin as part of a “reserve currency basket to replace the dollar.”
While the bitcoin price was trading sideways, cryptocurrency pundits were demanding Ether to breakout and follow the BTC parabolic move. During the past hour, Ether managed to breach up the bitcoin and the USD. At the time of writing, the top-rated alternative currency is up 5.43% and trading at $ 1,327.
Despite the downturn on Monday, Polkadot (DOT) also remains one of the best performing altcoins, seeing 75% increase In last week’s price and Flipping xrp Because it puts sight on the $ 20 mark. Currently, the DOT is trading at $ 16.80.
The total cryptocurrency market cap is now $ 1.03 trillion and Bitcoin’s dominance rate is 65.7%.