Some Bitcoin investors appear to be buying in around $ 30,000 and taking profits at $ 40,000, according to an analyst. In the meantime, the Ether Spot Market is decoupling from Bitcoin and is spinning wildly according to volatility metrics.
- Bitcoin (BTC) is trading at $ 32,963 as of 9:15 PM UTC (4:15 PM ET). Increase of 3.5% in the last 24 hours.
- Bitcoin 24-hour range: $ 31,650 to $ 34,893 (CoinDesk 20)
- BTC above the 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.
Bitcoin price rose from $ 31,640 at 9:00 PM UTC (4:00 PM ET) on Sunday to $ 34,893 at 2:00 PM UTC (9:00 PM ET) on Monday at the beginning of the week. The price has dropped a bit since then, as the world’s oldest cryptocurrency changed hands at the time of going to press.
“A clean break above $ 34,500 and more sustainable above $ 36,000 is needed,” David Lifchitz, chief investment officer of quant trading company ExoAlpha, told CoinDesk. “We could look forward to a classic ‘W’ bottom as well, when the first rebound from the lows is hit by another series of sales before finally bouncing properly again.”
So far this year, Bitcoin has risen by over 13% on spot exchanges such as Luxembourg-based Bitstamp.
“Everyone sees good purchases at the lower end of the $ 30,000 mark, so the institutions feel comfortable there,” said Chris Thomas, Head of Digital Asset at Swissquote Bank. “We saw strong sales of around $ 40,000 previously, so these will be the big tests for the next week or two.”
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“I would imagine there are some big names out there that we don’t yet know are currently buying bitcoin,” added Thomas. “We will probably discover them very soon. By then they will have accumulated quite considerable amounts.”
In the perpetual swaps market, where liquidity providers are using crypto for traders to leverage leverage, funding rates are rising again, particularly at OKEx, which has its highest level since January 20 at 0.0865%. This is a signal that leverage traders are ready to start paying to position yourself long.
A bullish Bitcoin mentality seems to be forming in the options market. Open Interest (OI) through strikes is highest at a price of $ 52,000 as of Sunday with 21.4 BTC in OI. Second place is much more bearish, however, as 17.7 BTC has accumulated at the $ 20,000 spot level.
“I think both Bitcoin and Ether will continue to hit higher highs,” said Michael Gord, chief executive officer of trading firm Global Digital Assets. “But as we saw in the previous bull run, when Bitcoin cools down the limelight moves onto ether and when BTC and ETH cool down we see altcoins glow,” added Gord. “I expect that in the next few weeks.”
Something to see: Ether decouples from Bitcoin. Over the past year, the correlation between Bitcoin and ether has decreased.
On January 24, 2020, the 90-day correlation was 0.86. A 90-day correlation of 1 means strongly correlated. On Sunday, January 24, 2021, that number was 0.66.
Ether becomes volatile
The second largest cryptocurrency by market capitalization, Ether (ETH), was unchanged on Monday, trading at around $ 1,342, down 0.08% within 24 hours from 21:15 UTC (4:15 p.m. ET).
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Ether’s 30-day volatility, a measure of the asset’s volatility on the spot market, has increased dramatically since the start of the year. On January 1, 2021, the volatility was 66.87%. On Sunday, January 24th, that number hit 152.67%, the highest since the coronavirus-induced market crash in April 2020. It’s also much higher than Bitcoin’s 106.33% volatility on January 24th.
Greg Magadini, chief executive of data aggregator Genesis Volatility, said that while the increased volatility in prices could present an opportunity for some traders, he is cautious about declining drawbacks.
“We noticed in our newsletter that the volatility at ETH is historically very high, but we are careful to shorten it compared to BTC,” Magadini told CoinDesk. “ETH has space to run. A quick increase to over $ 2,000 is definitely the order of the day for ETH. “
The digital assets of CoinDesk 20 are mixed on Monday. Notable winners as of 9:15 PM UTC (4:15 PM ET):
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- Oil rose 1.3%. Price per barrel of West Texas Intermediate Crude: $ 52.72.
- Gold was flat, in the green 0.01%, at $ 1,854 at press time.
- The 10-year US Treasury yield fell to 1.030 on Monday and was in the red by 6.3%.