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The price of bitcoin is rising in a low volume environment. Meanwhile, some bitcoin-to-ether rebalancing has occurred in exchanges since late November.
- Bitcoin (BTC) traded around $ 19,363 at 21:00 UTC (16:00 ET). Gain of 1.4% compared to the previous 24 hours.
- Bitcoin 24 Hour Range: $ 18.809- $ 19.607
- BTC above its 10 and 50 day moving averages, a bullish sign for market technicians.
The bitcoin market reverted to trending towards bullish territory after a flat Wednesday made it clear that traders were taking a breather. The price was able to go as high as $ 19,607 but lost steam to $ 19,363 at press time.
The even tighter range on Thursday compared to the previous 24 hours is a symptom of below-average volume. According to the CoinDesk 20 exchange data, the daily volume was $ 990 million at press time, lower than the daily volume of $ 1.3 billion on Wednesday and the average of $ 1.5 billion last month.
Optimism abounds that fundamentally positive news combined with market dynamics will take the world’s oldest cryptocurrency higher.
“Today I was explaining to my non-crypto colleagues that the supply / demand imbalance is simply incredible,” said Chris Thomas, head of digital assets at Swissquote Bank. “We’re seeing some institutional buyers picking up large quantities quite frequently, so others will see it too [and asking] where do they get the coins from? “
The dry powder is available in the form of a miner’s wallet. Their balances increased over the course of 2020, with Lubian.com, F2Pool, BinancePool and Poolin collectively holding over 33,000 BTC, according to data aggregator Glassnode.
“The miners have to cover the operating costs,” added Thomas. “So for me, it’s clear we’re going to continue going higher in a pretty compelling way for quite some time.”
“I am totally convinced that we have been in a bull market wave of proportions as large as the last for a couple of weeks,” said Henrik Kugelberg, an over-the-counter cryptocurrency trader. “Bitcoin will break the all-time high very soon and I would be surprised if we didn’t see a $ 30,000 bitcoin before the summer.”
This is a hyperbullish claim from a hardcore bitcoiner, but Kugelberg also warned that wild turns are likely in the coming days for the cryptocurrency market. “It will be a very bumpy ride with drops of 20% to 30% from time to time,” added Kugelberg. “It’s bitcoin and the [amplifier volume] the knob goes to 11. If I had the time I would try to surf the waves as a day trader, but I leave it to others “.
Bitcoin’s overall volatility has increased since October and traders will continue to keep an eye on that metric in this overall bull market.
While the focus appears to be on bitcoin in this market atmosphere, it’s not the only story in the cryptocurrency markets, noted Denis Vinokourov, head of research at crypto brokerage BeQuant.
Read more: Ether Eyed as Value Play with Bitcoin pressing $ 20K
“The focus may be on bitcoin and its seemingly inevitable run up to $ 20,000, but ETH appears to be well positioned for further upside,” Vinokourov told CoinDesk.
ETH / BTC goes bullish
Ether (ETH), the second largest cryptocurrency by market cap, rose on Wednesday, trading around $ 611 and climbing 2.3% in 24 hours at 21:00 UTC (16:00 ET).
Read more: Because Ethereum and Bitcoin are very different investments
The ETH / BTC pair, offered on most cryptocurrency exchanges, has had an uptrend on the daily charts by technical analysis standards. Since the end of November, its price has been above the main moving averages. This suggests that investors are willing to spend some bitcoin to collect the ether.
Michael Rabkin, head of institutional sales for cryptocurrency trading firm DV Chain, says that bitcoin is and will remain the cryptocurrency champion regardless of what happens to Ether and that this model likely reflects bitcoiners that will continue to dump profits in ETH during this bull run.
“Regarding ETH and BTC, we strongly believe that BTC is the overall market driver, “Rabkin told CoinDesk.” You will certainly have anomalous days where BTC is down and ETH is up, but mainly BTC drives the market price. overall encryption, including ether. “
Other markets
Digital assets on CoinDesk 20 are mixed Thursdays, mostly green. Notable Winners at 9pm UTC (4pm ET):
Read more: Ripple CEO rejects the threat to leave the United States
- Oil increased by 1.5%. West Texas Intermediate Crude Oil Barrel Price: $ 45.63.
- Gold was up 0.62% and at $ 1,841 at press time.
- The 10-year US Treasury yield fell Thursday, dropping to 0.911 and in the red by 2.8%.
