The crypto markets have reversed their course across the board and are flashing green on Friday. Bitcoin has surpassed $ 32,000 and ether has rallied strongly so far in 2021.
- Bitcoin (BTC) is trading at $ 33,608 as of 9:00 PM UTC (4:00 PM ET). Profit of 5.3% in the last 24 hours.
- Bitcoin’s 24-hour range: $ 28,845 to $ 33,873 (CoinDesk 20)
- BTC above the 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.
Bitcoin’s price was in an upward trend on Friday, a significant reversal from the past few days. The price per 1 BTC hit a low of $ 28,845 around 1:00 UTC (8:00 PM ET Thursday), and the world’s oldest cryptocurrency has been on the up since then. According to CoinDesk 20 data, it was worth $ 33,873, an appreciation of over 17% over that period. The price has stabilized a bit since then, trading at $ 33,608 at press time.
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Guy Hirsch, US managing director for multi-asset brokerage eToro, says a level of support where traders collect Bitcoin to drive the price back up has apparently arrived, which led to the reversal on Friday. “There appears to be strong support around $ 30,000 as prices have risen again to trade north of $ 32,000,” Hirsch told CoinDesk. This consolidation is likely the result of smart money continuing to buy bitcoin at a perceived discount.
Quantitative trading firm QCP Capital made a similar statement at $ 30,000 in its most recent investor letter published Friday. “In the near future, we expect a key fight at the spot level of $ 30,000. This fight for the weekly close of $ 30,000 will be the key.”
In the derivatives market, bitcoin funding rates for swaps continue to hover towards zero, particularly at the FTX venue, which currently has the lowest interest rate at 0.0318%. This signals that leveraged demand for long positions is fading.
“We pay close attention to weekend price movements and leverage [perpetual] Funding rates to measure retail interest, ”QCP stated on Friday.
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On the futures market, open interest (OI) on the eight exchanges monitored by CoinDesk 20 was $ 11 billion on Thursday, compared to Tuesday’s record high of $ 13 billion. This is a sign that institutional investors are losing interest and may liquidate some of their positions.
“After the BTC top two weeks ago, the strength in the US hours lost momentum for the first time,” QCP also noted. “This is a clear indication of the exhaustion of demand from US institutions and companies [that] were the main drivers of this bull run. “
Macroeconomics could come into play, however, eToro’s Hirsch told CoinDesk. “Given the ongoing economic uncertainty as the COVID-19 pandemic rages on and central bank money pressures continue unchecked, I would expect more people to switch back to Bitcoin at some point in the not too distant future.”
Ether will blow out Bitcoin in 2021
Ether (ETH), the second largest cryptocurrency by market capitalization, rose on Friday, trading at $ 1,253 and rising 4% in a 24-hour period from 9:00 PM UTC (4:00 PM ET).
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While Bitcoin has gained more than 15% so far in 2021, Ether is doing much better, by over 70% over the same period. “Ether seems to have finally broken its recent lockstep correlation with Bitcoin, as evidenced by its faster recovery from a sell-off that also appears to be fueled by profit-taking after the second largest crypto asset hit an all-time high earlier this week,” noted Guy Hirsch from eToro.
Jake Brukhman, CEO of crypto investment firm CoinFund, said CoinDesk investors are taking profits from Bitcoin and trading airwaves and other assets, given the price trend in 2021 and the high profile of Bitcoin.
“I think key assets are going through a dynamic of clout, consolidation and rotation,” said Brukhman. “Bitcoin hits [a] high, then consolidated and the money flows into the ether. Then the ether reaches a high, consolidates and the money flows into polkadot. “
Digital assets on CoinDesk 20 are mostly green Fridays. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
- Oil was down 1.8%. Price per barrel of West Texas Intermediate Crude: $ 52.05.
- Gold was in the red at 0.85% and at $ 1,853 at press time.
- The 10-year US Treasury yield fell to 1.084 on Friday and was in the red by 2.3%.