Bitcoin’s price is at its 11-month high as volatility recovers. Meanwhile, ether’s dominance has skyrocketed in the continued growth of decentralized finance (DeFi).
- Bitcoin (BTC) is trading around $ 10,998 as of 20:00 UTC (4 pm ET). Earn 2.1% in the previous 24 hours.
- Bitcoin 24-hour range: $ 10,573- $ 11,422
- BTC above the 10-day and 50-day moving averages, a bullish signal for market techs.
Bitcoin’s price hit another high in 2020 on Tuesday, hitting $ 11,422 on spot exchanges like Coinbase. The last time the price of the world’s oldest cryptocurrency reached that level on Coinbase was on August 12, 2019.
Read more: Bitcoin futures volume increases 186% as price hits $ 11K
“Bitcoin has decisively boosted not only $ 10,000 psychological resistance but also a key level near $ 10,055,” said Katie Stockton, analyst at Fairlead Strategies. However, she is skeptical that the price can stay above $ 11,000.
“There are some signs of upward exhaustion in this upside momentum, so we would be sure to wait for confirmation of the break before adding exposure to bitcoin.” This would occur in consecutive weekly closings above $ 10,055, ”he added.
“The fear and greed index is in the ‘extreme greed’ zone, moving towards the level of overbought,” said Konstatine Kogan of cryptocurrency fund BitBull Capital. “The first support is at the $ 10,000 level. If bitcoin falls below this mark, then there is a possibility of a further decline, ”he added.
Not all stakeholders are suspicious of the bitcoin market price hike. A silver lining for traders is that volatility is returning, according to data from the CryptoCompare aggregator.
“Bitcoin’s historical volatility has rebounded from its lowest point since March 2019,” said James Li, research analyst at CryptoCompare. “The question is whether this is just a temporary rebound or if we go back to a historic and more volatile BTC market,” he added.
Read more: Bitcoin’s latest rally may have staying power, exchange flows suggest
Ethereum dominance hits 2020 high
The second-largest cryptocurrency by market cap, ether (ETH), fell on Tuesday, trading around $ 318 after falling 1.5% in 24 hours from 20:00 UTC (4:00 pm ET) .
Read more: DeFi’s high usage drives Ethereum contract calls to a new record
Ether’s dominance in the cryptocurrency market crossed 12% on Monday, its highest point in 2020, according to data calculated by real-time graphics company TradingView. Domination, or market capitalization as a percentage of the entire cryptosphere, is a measure that traders use to get a quick idea of the importance of a cryptocurrency relative to the broader digital currency market. Although ether dominance has dropped below 12% on Tuesday, it is still higher than it was year-round; The last time Ether reached 12% dominance was in May 2019.
“DeFi users can access that market using stablecoins. But clearly the main primary asset fueling DeFi’s execution remains ether, hence its recent dominance, “said Jean-Marc Bonnefous, managing partner of Tellurian Capital, which has been investing in crypto projects since 2014.” The recent development and rise of new and better DeFi applications like Compound, Aave and Balancer are clearly generating more traction for Ethereum, “he added.
Read more: Participation in Ethereum 2.0 takes the first step with the validator test system
The digital assets in CoinDesk 20 are mostly flashing green on Tuesday. Notable winners as of 20:00 UTC (4:00 pm ET):
Read more: Deribit reports daily record of $ 539 million of Bitcoin options traded
Notable losers as of 20:00 UTC (4:00 pm ET):
Read more: Tetras Capital closes Crypto Hedge Fund after 75% loss
Read more: A trillion, two trillion, three trillion, four? DeFi knocking on TradFi’s door
- Gold rose 0.75% to $ 1,956 as of press time after hitting an intraday high of $ 1,980.
- Oil is down 1.7%. Price per barrel of West Texas Intermediate crude: $ 40.94
Read more: Bitcoin’s earnings expectations hold on settlement of futures contracts
- US Treasury bonds fell on Tuesday. Yields, which move in the opposite direction of the price, fell more in the two years, in the red 11.7%.
Read more: The fall of the dollar may have helped propel Bitcoin beyond $ 11K
Leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and is governed by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrency and blockchain startups.