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The price of bitcoin has fallen slightly, although overall market sentiment remains bullish. Ether’s correlation with bitcoin is increasing despite differences in value propositions.
- Bitcoin (BTC) is trading around $ 19,077 at 9:15 p.m. UTC (4:15 p.m. ET). Slip of 2.1% in the previous 24 hours.
- 24-hour range of Bitcoin: $ 18,171 to $ 19,920
- BTC above its 10 and 50 day moving average, a bullish signal for market technicians.
The price of bitcoin was able to reach $ 19,920, according to data from CoinDesk 20, before the momentum slowed. Traders began to press the sell button, taking the price to $ 18,171 before recovering. It was $ 19,123.70 at the time of publication.
Katie Stockton, technical analyst for Fairlead Strategies, sees $ 19,511 as a level of “resistance,” a price level that the world’s oldest cryptocurrency can cross during this time of very bullish sentiment. “A possible breakout seems likely from a momentum standpoint, “she said, noting that $ 19,511” is not a high resistance level – $ 20,000 is a psychological barrier, as is Dow 30. 000 ”.
On the equity side, Tuesday was green on the main stock indexes.
A positive performance outside of stocks often means the price of bitcoin will trend higher, but Tuesday’s sideways activity once again reaffirms just how volatile the crypto markets can be. In turn, this raises questions about a major narrative regarding Bitcoin’s role.
Read more: Coinbase negotiated MicroStrategy to buy $ 425 million worth of Bitcoin, according to Exchange
“Expect additional volatility in the short term, even if the mid to long term momentum is strongly positive,” Fairlead’s Stockton said. So, when looking at the volatility of bitcoin versus popular traditional assets, the store of value thesis may not be as strong as many think that volatility is on the rise versus other investments.
However, the narrative that bitcoin serves an important purpose in uncertain times still holds true for much of the market.
“It is being used as a hedge against the inflation that will come from global monetary easing in the wake of COVID-19, ”said Midori Kanemitsu, market analyst at the cryptocurrency exchange bitFlyer.
Part of this increased volatility may simply be due to investors participating in profit-taking at these high levels, said Andrew Tu, director of quantitative trading firm Efficient Frontier. “Currently there is less influx of stablecoins in exchanges and more bitcoins in exchanges, which suggests less buying pressure for bitcoin in the very near future,” Tu told CoinDesk.
Analysts are also watching the ether. The Ethereum network’s native currency is at an all-time high above $ 1,400 and many believe cryptocurrency to be a good buy in this bull market.
“I think ETH is still undervalued compared to BTC,” noted George Clayton, managing partner of investment firm Cryptanalysis Capital. “Everything DeFi (decentralized finance) going on shows the usefulness of smart contract protocols.”
Is bitcoin the ether leader?
Ether (ETH), the second largest cryptocurrency by market cap, was down on Tuesday, trading around $ 596 and slipping 2% in 24 hours at 9:15 p.m. UTC (4:15 p.m. ET).
Over the past few days, the ether has closely mirrored the rise in the price of bitcoin.
The correlation between bitcoin and ether also tends to increase, although it is lower than it was after the market crash in March.
The fact that the two cryptocurrencies increasingly trade in tandem belies the fact that Ethereum’s 2.0 Beacon Chain launch clearly differentiates some of its use case aspects. While Bitcoin’s ‘store of value’ narrative continues to be a strong signal from industry analysts, Ethereum’s ‘programmable money’ thesis does not yet appear to ensure that the Active market operates on the basis of its own fundamentals.
Read more: Ethereum 2.0 beacon chain goes live as ‘World Computer’ begins review
“Both assets have definitely seen a [U.S. dollar]-the price on the rise, and while BTC has been the only one to have much recent news regarding its proximity to all-time highs, Ethereum has been the real star of DeFi’s summer and fall by compared to BTC, ”noted John Willock, CEO of crypto custodian provider Tritium. “I think that as a confidence in 2.0 with an operating history and a broader investor understanding of the economic implications for the valuation of ETH spreads, we will see a bullish rally in ETH,” said he added.
Other markets
Digital assets on CoinDesk 20 are mostly Red Tuesday. A notable winner at 9:15 p.m. UTC (4:15 p.m. ET):
Read more: Hive Reports Second Quarter Profit of $ 7.4 Million as Lower Costs Beyond ‘Big Expenses’
- Oil fell 1.1%. Price per barrel of West Texas Intermediate crude: $ 44.54.
- Gold was in the green 2.1% and at $ 1,814 at the time of publication.
- The yield on 10-year US Treasuries climbed Wednesday, jumping to 0.929 and in the green to 11.8%.
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