Crypto Analysis

Crypto Market Recovers as Bitcoin Holds Above Key Level on Week Close

Market cap is at $1.96 trillion with a daily increase of 5 per cent as trade volumes across exchanges rose

Crypto Market Recovers as Bitcoin Holds Above Key Level on Week Close
Crypto Market Recovers as Bitcoin Holds Above Key Level on Week Close

The crypto market recovered strongly early this morning as Bitcoin (BTC) closed the week above its 20 weeks moving average. This came after a volatile Sunday with steep dips and rises to the tune of 5-10% for Bitcoin (BTC) and key altcoins. The total crypto market cap was at $1.96 trillion as of 9 am IST with a daily increase of 5 per cent as trade volumes across exchanges rose by 21 per cent to $114 billion.

BTC dipped to a low of $40,700, the 20-week moving average, and bounced immediately to end the day near the $44,000 region. It hit a high of $44,350 during the early hours of Monday, and closed at $44,060, an increase of nearly 4 per cent. The $43,000 support level seems to have been flipped to support for the short-term with BTC dominance now standing at 42.4 per cent.

Ethereum (ETH) bounced sharply as well from its low of $2,740 to a high of $3,165, a daily gain of 8 per cent. With its major support level of $2,650 still untested, there is anxiety about it eventually dropping to that level should sentiment turn bearish. It is currently trading near its critical resistance of $3,150.

All top 20 cryptocurrencies, except Cardano (ADA), had a green day with Uniswap (UNI) leading the charts with a spectacular 33 per cent gain. Algorand (ALGO) and Solana (SOL) registered more than 6 per cent gains. Uniswap (UNI) and Sushiswap (SUSHI), two of the top decentralized exchanges (DEX) have gained more than 25 per cent today as China’s ban on services from centralized exchanges reroutes its residents to the DEXes. Meanwhile, Huobi Token (HT) issued by Huobi, a centralized exchange with many China-based users, declined by more than 13 per cent.

With BTC holding its $43,000 support level, analysts expect a rally towards $47,000 this week. In case of rejection in between, BTC has the potential to drop below $40,000 briefly. As September comes to an end, BTC holding above $40,000 on a weekly timeframe is critical before it attempts to breach the $50,000 levels in October.

Top Gainers today:

  1. Perpetual Protocol (PERP): 57.3%
  2. Uniswap (UNI): 33.0%
  3. Sushiswap (SUSHI): 25.7%

Top Loser today:

  1. Huobi Token (HT): -13.9%
  2. Celer Network (CELR): -9.5%
  3. Tezos (XTZ): -5.8%

The analysis includes the top 100 cryptocurrencies only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

  1. Cardano (ADA), the third-largest cryptocurrency, has partnered with decentralized oracle network Chainlink (LINK) to allow developers teams to supply institutional-grade data provided by Chainlink into smart contracts run on Cardano.
  2. According to El Salvador’s President Nayib Bukele, there are more than 2.1 million users of the government-backed Chivo cryptocurrency wallet which was launched in early September as Bitcoin became an official tender in the country.
  3. According to global investment bank JP Morgan, institutional investors are more interested in Ethereum futures rather than Bitcoin futures as the 21-day average Ethereum futures premium rose 1% more than the price of the asset.
  4. According to on-chain analytics platform Glassnode, the Bitcoin Lightning Network has grown by 226% from 32,000 channels established during 2019-20 to an all-time high with over 72,380 open payment channels.
  5. Axie Infinity (AXS), an Ethereum-based pokemon-inspired game that has surged in popularity this year, has surpassed the $2 billion mark in total transaction volume last week according to data platform DappRadar.

DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.


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February 2024