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Bitcoin was up before losing momentum; ether holders are moving their cryptocurrency out of exchanges.
- Bitcoin (BTC) traded around $ 10,284 at 20:00 UTC (16:00 ET). Down by 0.12% compared to the previous 24 hours.
- Bitcoin 24 Hour Range: $ 10,174- $ 10,488
- BTC below its 10-day moving average but above 50 days, a sideways signal for market technicians.
Bitcoin has continued its upward momentum since Wednesday, with the world’s oldest cryptocurrency climbing as high as $ 10,488 on spot exchanges like Coinbase before losing some strength and now moving in a sideways pattern.
Constantin Kogan, a partner at BitBull Capital crypto fund of funds, points to bitcoin’s Relative Strength Index, or RSI, as an indicator of where the market might be headed. The RSI measures price changes to indicate market conditions, such as “overbought” when there have been too many buys or “oversold” when there are too many sales.
Read more: Structural problems may be the cause of BitMEX’s low Bitcoin “ Cash and Carry ” rate
“The relative strength index moved in favor of growth after the price moved up to $ 10,355,” Kogan said. “There is a chance to return to the key area of $ 10,756, but all is not as rosy as we would like to see.”
Kogan said bitcoin price action will depend on the performance of the global economy for the 2020 budget.
“Many analysts predict that BTC will continue to rise in price over the long term,” Kogan added. “However, a breakthrough is unlikely this year. It is expected next year if we don’t see a global recession escalation. ”
Read more: The pandemic will accelerate the adoption of Bitcoin, says DBS Bank Economist
In bitcoin futures, open interest has remained around $ 3.7 billion over the past week.
“This represents a lot of indecision in the BTC market,” said Daniel Koehler, liquidity manager for cryptocurrency exchange OKCoin, regarding the lull in bitcoin futures. “I think a lot of big players have covered these high price levels and are waiting for the momentum to clearly go in one direction.”
Read more: YouTube Ignored Warnings About XRP “Giveaway” Scams, Ripple Says
Henrik Kugelberg, a Swedish over-the-counter cryptocurrency trader, points to bitcoin’s long-term outlook versus Fiat’s performance. “The macro perspective is obviously that all currencies will lose value and the only hedge in the currency market in the coming months is bitcoin.”
Indeed, the US dollar index, a measure of the US currency against a basket of other fiat, is still in the doldrums, down 0.30% on Thursday.
Italy-based over-the-counter cryptocurrency trader Alessandro Andreotti said he’s not sure if the price of bitcoin will continue to rise, but it remains bullish. “Opinion seems divided as to whether this is just a ‘bear trap’ or the start of a new bull market,” he told CoinDesk. “I buy in both cases. Personally, I am optimistic for the short term. ”
The etheric trade balances are falling
Ether (ETH), the second largest cryptocurrency by market cap, rose Thursday, trading around $ 364 and climbing 2% in 24 hours at 20:00 UTC (16:00 ET).
Read more: Ether Traders Could Hedge Against DeFi Slowdown: Analyst
Aether balances on centralized exchanges are at a seven-month low. On Wednesday, 17,158,739 ETH sat on the exchanges, the lowest since February 9, according to data from the Glassnode aggregator.
“My immediate thought is that many people have moved their ETH off the stock exchanges in order to participate in yield farming,” said Andrew Tu, executive at quantum trading firm Efficient Frontier. “A lot of other traders have probably moved their ETH in order to provide liquidity to Uniswap pools. SushiSwap is a great example of this.”
Read more: SushiSwap DeFi “Vampire” sucks $ 800 million from Uniswap
Other markets
Digital assets on CoinDesk 20 are mixed on Thursday. Notable Winners at 8pm UTC (4pm ET):
Read more: 1,000 new token pairs added to Uniswap in one week; Beware of buyers
Notable Losers at 20:00 UTC (16:00 ET):
Read more: SushiSwap Migration ushers in the era of “protocol politicians”
Read more: How to watch INX IPO in real time on the Ethereum Blockchain
- Oil is down by 1.8%. West Texas Intermediate Crude Oil Barrel Price: $ 37.06.
- Gold is flat Thursday, down by 0.10% and at $ 1.944 at press time.
Read more: Uniswap’s September volume surpasses August’s $ 6.7 billion record in 10 days
- US Treasury bond yields all slipped on Thursday. Yields, which move in the opposite direction from the price, fell more in the two-year period, in the red by 5.3%.
Read more: Because cryptocurrency investments are less vulnerable to US-China tensions
