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Bitcoin (BTC) continues to trade in a tightening range within a pennant pattern and although the price has exceeded the 20-day moving average, it is clear that the bulls and bears are vying for the direction that will take the digital asset.
Data from Cointelegraph Markets and TradingView shows BTC traded in a range between $ 34,955 and $ 37,850 over the weekend, but traders buying every drop appear to be doing so with less bullish conviction.
JPMorgan research analyst Nikolaos Panigirtzoglou recently highlighted the importance of Bitcoin soon breaking above the $ 40,000 level in order to avoid being hurt by an exodus of ‘trend following’ investors that could worsen the market. correction from last week.
According to Yves Renno, head of trading at Wirex, Bitcoin is in a “consolidation above the $ 35,500 level” but Renno still sees an overall positive trend in the market.
Renno also said the most recent correction was actually seen as a buying opportunity for large institutional-sized investors, as evidenced by an increase in the number of BTC whales and a “low to medium” supply of miners.
Renno said investors should expect a “continued period of high volatility with a positive average trend,” in the weeks and months to come, depending on the action in the derivatives market.
He said:
“Open interest is always hitting new ATHs, which makes the market even more risky as it implies that there is a higher risk of liquidation during a correction, i.e. collateral sold,” which generally amplifies the corrections. “
Ether (ETH) is also looking to show “continued strong price momentum” as seen by Renno, boosted by the launch of Eth2 and the upcoming launch of CME futures in February. Eth2 is also expected to boost the DeFi economy in general, as the ecosystem as a whole will benefit from lower transaction fees and less congestion.
Positive developments on the regulatory front
News that new President Joe Biden intends to choose Gary Gensler, a professor who previously taught a blockchain and cryptocurrency course at MIT, as chairman of the United States Securities and Exchange Commission , gave the crypto industry a boost in sentiment in the near term.
Bitcoin also received an important vote of confidence from Stephen Harper, the former Prime Minister of Canada. Harper has suggested that there may be a place for Bitcoin as part of a “reserve currency basket to replace the dollar”.
As the price of Bitcoin trades sideways, crypto experts have called on Ether to escape and follow BTC’s parabolic movement. In the last hour, Ether managed a bullish breakout in his BTC pair and his USD pair. At the time of writing, the top ranked altcoin is up 5.43% and is trading at $ 1,327.
Despite its withdrawal on Monday, Polkadot (DOT) also continues to be one of the top performing altcoins, recording a 75% price increase last week and tipping XRP as it targets the $ 20 mark. Currently, the DOT is trading at $ 16.80.
The overall cryptocurrency market capitalization now stands at $ 1.03 trillion, and Bitcoin’s dominance rate is 65.7%.
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