NEW DELHI: Major cryptocurrencies were trading with big gains on Monday as Tesla chief Elon Musk’s tweet over Bitcoin gave new hopes to crypto investors. Led by Bitcoin, eight among top ten digital tokens posted up to 12 per cent surge.
Musk tweeted on Sunday that the electric carmaker will resume allowing Bitcoin transactions when miners who verify transactions use more renewable energy. Bitcoin, the world’s biggest and best known cryptocurrency, is over 42 per cent down from the year’s low.
“We can see a lot of consolidation across markets. Trading volumes remain low. This consolidation was quite expected and might prevail throughout the month. The selloff had very little trading volume, which is a positive sign for the crypto market,” said Edul Patel, CEO and Co-founder, Mudrex.
El Salvador’s bold move to accept Bitcoin as legal tender has Wall Street once again wondering whether a cryptocurrency could really ever replace the old-school dollar. Corporates like Tesla, MicroStrategy and Square incorporated Bitcoin into their balance sheets without igniting a broader corporate revolution. Now the focus is turning to governments.
Crypto Cart: Quick Glance (Source: coinmarketcap.com, data as of 09.30 hours, IST on June 14, 2021)
- Bitcoin: $38,996.77, up 11.51%
- Ethereum: $2,478.09, up 5.82%
- Tether: $1.00, down 0.05%
- Binance Coin: $358.86, up 5.58%
- Cardano: $1.54, up 5.59%
- Dogecoin: $0.3212, up 4%
- XRP: $0.8708, up 5.50%
- USD Coin: $0.9996, down 0.05%
- Polkadot: $21.72, up 7.35%
- Uniswap: $22.8, up 8.89%
Note: Price change in last 24 hours
Trade by Siddharth Menon, cofounder & COO, WazirX
Bitcoin is trading between its weekly support at $32,000 and its weekly resistance at 200 DMA (Daily moving average) of $42,000. There is a lot of fear in the market because President Biden will be talking about cryptocurrency and its role in the recent ransomware hacks. A weekly close below $32,000 would be problematic for Bitcoin.
An on-chain indicator, on the other hand, has displayed an “Oversold signal”. The indicator is the “Active Addresses Sentiment Indicator” that is available at Decentrader.
The metric compares the 28-day change in price and the 28-day change in the active address. The orange line represents the BTC’s 28-day change in price and the red and green dotted line represents the upper and the lower band of the 28-day change in active address, respectively. ETMarkets.com
It’s a bullish signal when BTC’s price drops below the lower band (represented by the green dotted line) and breaks into it almost immediately. This happened shortly after the March 2020 Covid crash and the 2018 bear market bottom.
The stock to flow chart also indicates that a market might see a strong rebound in BTC prices. Currently, it has deviated from the stock to flow line, and based on similar past deviations, the market could rebound heavily to get back to the stock to flow line. The narrative is bearish. At the same time, facts and statistics are bullish.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)