Calm After the Strom: Bitcoin Reclaims $57K and Ethereum Above $2K (Market Watch)

Bitcoin dipped to its lowest point in over a week beneath $56,000 but has recovered some of the losses and currently stands above $57,000. Most altcoins have retraced even harder, including a double-digit price drop for the high-flying Ripple (XRP) and Ethereum briefly dropping beneath $2,000.

BTC’s Dominance Increases Despite the Drop

The past several days didn’t go all that well for the primary cryptocurrency. After failing to overcome $60,000 on numerous occasions, the asset reversed its trajectory and headed south.

Bitcoin reached $59,400 on Thursday, but its inability to sustain the upward momentum gave the bears an opportunity to push it down, which led to a $4,000 price drop in less than 48 hours.

Yesterday was an especially harmful trading day for BTC as it slumped to a low of about $55,500. This was the lowest price line since late March.

It’s worth noting that this retracement came as the South Korean kimchi premium normalized following a yearly high. As CryptoPotatoreported, such developments typically lead to a price drop.

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Nevertheless, the cryptocurrency bounced off and has regained more than $1,500 since its low. As of writing these lines, BTC stands just above $57,000.

On the positive side, the altcoin market has retraced even harder. Consequently, bitcoin’s market capitalization has recovered a little less than 1% and stands around 55% after dipping below that level yesterday.

Altcoins Deep in Red

The alternative coins were on a roll in the past week or so, registering new records. Ripple was among the best performers by adding 100% of value in that timeframe, reaching a 3-year high at over $1,10, and becoming the 4th largest cryptocurrency by market cap.

However, XRP has retraced with about 11% since yesterday, despite the company’s CEO claiming that the court hearing against the SEC went well for the payment processor.

Ethereum dropped below $2,000 but has jumped slightly and currently stands at $2,020. Binance Coin (-2%), Polkadot (-4%), Cardano (-6%), Uniswap (-2%), Litecoin (-5%), and Chainlink (-5%) are also in the red.

The situation with the lower- and mid-cap altcoins is significantly more volatile, as one could expect. Helium (-15%), Ontology (-14%), Qtum (-14%), NEM (-12%), EOS (-12%), Waves (-11%), and Bitcoin SV (-10%) have also retraced with double-digits.

On the other hand, WazurX (37%), 1inch (23%), Enjin Coin (23%), Harmony (21%), PancakeSwap (12%), Yearn.Finance (12%) and Conflux Network (10%) have gained the most since yesterday.

Bitcoin, Ethereum And Altcoins Struggle to Recover

Bitcoin price extended its decline below the key USD 57,000 support level. BTC even broke the USD 56,200 support, but the bulls were active near USD 55,500. It is currently (04:30 UTC) consolidating above USD 56,000, and it is facing many hurdles near USD 57,000 and USD 57,200.

Similarly, most major altcoins are still in the red zone. ETH broke the USD 2,000 support before the bulls appeared near USD 1,940. XRP/USD is trimming gains and it is now trading near the USD 0.900 level.

Total market capitalization

Bitcoin, Ethereum And Altcoins Struggle to Recover 101
Source: www.tradingview.com

Bitcoin price

After a clear break below USD 57,000, bitcoin price extended its decline. BTC even dived below USD 56,200, but the bulls were able to protect the key USD 55,500 support zone. The price is now recovering and trading above USD 56,000. An initial resistance is near the USD 57,000 level. The key resistance for a steady increase is now forming near the USD 57,200 level.

On the downside, the USD 56,000 level is a short-term support. The main support is now near USD 55,500, below which the bears might gain strength.

Ethereum price

Ethereum price also followed bitcoin and it broke the key USD 2,000 support. ETH traded close to the USD 1,930 support and it is now correcting higher. There was a break above USD 1,980, but the bulls are facing many hurdles. The first key resistance is near USD 2,020, followed by USD 2,050.

On the downside, USD 1,950 and USD 1,940 are decent support levels. Any more losses might call for a drop below USD 1,900.

BNB, ADA, litecoin, and XRP price

Binance Coin (BNB) recovered losses and it is back above the USD 380 level. BNB is testing the USD 395 resistance, but the key breakout zone is near USD 400. A successful close above USD 400 may possibly increase the chances of a fresh increase towards USD 425.

Cardano (ADA) tested the USD 1.150 support zone, where the bulls took a stand. ADA is rising and it could soon attempt an upside break above the USD 1.200 and USD 1.220 resistance levels. The next key resistance is near the USD 1.285 level.

Litecoin (LTC) trimmed most of its gains after it failed to clear the USD 245 resistance. LTC declined below the USD 225 support, but it found bids near USD 212. The price is now moving higher, but it must gain strength above USD 225 for a steady increase to USD 245.

XRP price topped near USD 1.10 before starting a downside correction. XRP broke the USD 1.000 support and it even tested USD 0.900. It is now consolidating above USD 0.900, with an immediate resistance at USD 0.945. The main resistance is now near the USD 1.000 level.

Other altcoins market today

Many altcoins declined over 8%, including BTG, HNT, XEM, BTT, QTUM, FLOW, XLM, NEO, SNX, EOS, ONT, NEAR, LINK, MATIC, and BSV. Conversely, WRX was able to rally and it cleared the USD 4.50 level.

Overall, bitcoin price is showing a few bearish signs below USD 57,000 and USD 57,200. However, BTC could attempt a fresh increase unless there is a clear break below the USD 55,500 support.

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Bitcoin, Ethereum And Altcoins Struggle to Recover 102
Bitcoin Miners Hit Jackpot as Hash Rate Peaks Again

Data from on-chain analytics provider Glassnode has reported that Bitcoin’s average hash rate hit a new all-time high this week, crossing a daily average of 178 exahashes per second for the first time in history.

Bitinfocharts confirms the record high, reporting the current hash rate at 176 EH/s. It topped 150 EH/s twice in February and has remained at these high levels for the past two months, steadily increasing.

Hashrate is often considered as computing ‘horsepower’ for the Bitcoin network and a strong sign of its security. The higher the hashrate, the harder it is to attack the network.

The bullish on-chain metrics were observed by data scientist Rafael Schultze-Kraft [@n3ocortex], who added that mining difficulty has also hit a new all-time high.

1/ A thread on #Bitcoin miner metrics.

First, some fundamentals.

Bitcoin’s average hash rate hit a new ATH yesterday – crossing a daily average of 178 exahash / sec for the first time in history.

Miners keep spinning up machines – hash rate is up only.https://t.co/SEdtQGNsT7pic.twitter.com/vIjVGyH8QC

— Rafael Schultze-Kraft (@n3ocortex) April 6, 2021

Mining Never More Profitable

The analyst noted that Bitcoin miners have been making more than $50 million per day for the past month. He put this into perspective by pointing out that a year ago, this number was around $12 million – so current earnings are a fourfold increase despite the block subsidy being cut in half in May 2020’s halving.

Miners are also now holding on to the new coins they’re minting as the net position has flipped back to green, according to Glassnode. In the run-up to the $40K price level, miners were aggressively selling off to cover their costs, but they’ve now switched back into accumulation mode.

“In fact, the Bitcoin unspent supply (BTC that has never left the original mining addresses), has started to increase again after a quick and sharp drop of around 15k BTC at the beginning of the year. More hodling than spending.”

He added that direct BTC transfers from miner to exchange wallets have been going back down significantly, and even USD-dominated miner to exchange volume has decreased despite a stable price. However, miner activity represents a tiny fraction of BTC trading volumes as a whole.

The analyst concluded that these metrics are very bullish, and miners have little incentive to cash out now or capitulate as many predicted after the halving.

Bitcoin Price Update

At the time of press, Bitcoin was trading down 1% on the day at $56,700, according to Coingecko. It is down at the same time last week by 3.4% but remains within the month-long range bound channel it has formed.

Bitcoin has not dropped below $50K for over a month, which is also a bullish sign that support is holding strong.

Mark Cuban Praises Ethereum and Keeps Buying Bitcoin
Mark Cuban Praises Ethereum and Keeps Buying Bitcoin 101
Mark Cuban. Source: a video screenshot, Youtube, TMZSports

The Bitcoin (BTC) vs. Ethereum (ETH) debate just became even more complicated thanks to American billionaire entrepreneur Mark Cuban. He keeps praising ETH as more superior to BTC, but stores much more of his wealth in this most popular cryptocurrency than ETH, aims to buy more BTC, and doesn’t plan to sell it.

In March, he said that ETH is “the closest we have to a true currency,” and now he’s talking about ETH as a store of value alternative as it has “a lot more built-in utility in its organic and native form.”

“Because people are using ETH to buy NFTs, to do more things, and because smart contracts just make it a little bit simpler to do development. And because we’re looking at hopefully a shorter-term evolution to ETH 2.0, […] I think you’ll see there’s more reason to buy ETH right now beyond just being a store of value – but it doesn’t exclude, you know, being a store of value to buy ETH,” the Dallas Mavericks owner said during the recent Unchained podcast.

He added that with Ethereum improvement proposal (EIP) 1559, “everything changes and what happens going forward is going to really impact how people perceive it specifically as a store of value.” Once the proof-of-stake is reached, bringing forth a much higher number of transactions per second, there will be a massive change in the environment, he said, resulting in a reason for some to use ETH as a store of value over BTC.

“I think the applications leveraging smart contracts and extensions on Ethereum will dwarf Bitcoin. Bitcoin will be a store of value but because it has to be done using miners, you can’t just switch to proof-of-stake with Bitcoin,” Cuban said.

Meanwhile, any asset that is looking for appreciation has to be sold with narratives, said Cuban. While gold’s narrative has historically been a hedge against inflation, it has never been that hedge, he argued. Gold’s not actually needed, but the narrative that it’s precious helps build its value.

“And bitcoin kind of is the same way,” he said. There is no correlation between the actions of the US Federal Reserve and the price of BTC, but it’s a “great narrative,” he said. “All assets could go up in price with inflation, and bitcoin could be one of them […] but so could the cost of bananas.”

That said, as a “bitcoin believer as a store of value,” he’ll “make an exception” – he plans to buy new BTC, not spend his existing coins, and use that to buy a Tesla.

Also, recently he said that his crypto portfolio consists of 60% bitcoin, 30% ethereum, and 10% of other cryptoassets.

Reserve currency and global tide

Meanwhile, Senior Commodity Strategist at Bloomberg Intelligence, Mike McGlone, argues that BTC has a better chance to become a reserve currency than ETH. Per a Bloomberg Galaxy Crypto Index April report,

“It appears the narrative has tilted toward allocating a small portion of assets toward the crypto vs. the risks of missing out on the potential for bitcoin becoming the global benchmark digital asset. Adoption of the benchmark crypto as a global reserve asset has crossed the mainstream threshold, as we see it, and the market tide is rising.”

McGlone said that BTC is replacing gold suddenly rather than gradually and this process is likely to accelerate, “underpinning its price for the foreseeable future and magnifying the dollar’s dominance as the reserve currency.”

Bitcoin fills the need for a digital reserve-asset in a low-yield world, he said. Companies like Visa, Goldman Sachs, and Morgan Stanley have “embraced the digitalization of money, buoying the process of bitcoin replacing gold as the global digital-reserve asset,” said the strategist.

Most indicators show a shifting global tide that favors bitcoin as a reserve asset, McGlone concluded.

However, despite this tide, ETH keeps outperforming BTC in the crypto market.

At 15:41 UTC, BTC, with a market capitalization of more than USD 1trn, trades at USD 56,572 and is up by 676% in a year, while ETH (market capitalization – USD 239bn) trades at USD 1,992 and is up by 1,074%.

Bitcoin Price Analysis: Losing $4K in 24 Hours, Can BTC Hold the Critical Support Area?

Bitcoin fell by a sharp 4% so far today as it dropped as low as $55,600. The cryptocurrency had started the month with another attempt to breach the $60,000 benchmark level. Unfortunately, it was unable to overcome this resistance through the week as it set a range between $60,000 and $57,000.

Today’s price drop caused bitcoin to break beneath this range as mentioned above. As of writing these lines, and as seen on the following 4-hour chart, it is currently holding the critical support around $56,200 – $56,100, provided by a short-term .382 Fib and a 4-HR 200 moving average line.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $56,200, $55,600, $55,000, $54,675, $54,200.

Key Resistance Levels: $58,355, $60,000, $60,750, $61,781, $62,400.

Moving forward, if the bears push back beneath the current support at $56,200 (MA-200 on the 4-hour chart), the first support lies at today’s low around $55,500 (which is also a descending trend-line started forming towards the end of January).

This is followed by $55,000, $54,675 (.382 Fib), and the critical level of $54,200 (50-days MA). This last support is further strengthened by an ascending trend line that has been in play since early March 2021.

On the other side, if BTC price will hold here, the first resistance now lies at the daily MA-20 around $56,800. This is followed by $58,355 (February highs), and the crucial area of $60,000. The latter had been rejected at least 5 times over the past month.

The daily RSI has now crossed beneath the midline, indicating bearish momentum has taken control within the market, in the short term. This comes after the RSI produced a bearish divergence signal earlier in the week as we mentioned here in the previous price analysis.

Bitcoin, Ethereum and Altcoins Lose Steam, Correct Lower

Bitcoin price struggled to clear the USD 58,000 resistance zone. As a result, BTC reacted to the downside and traded below the USD 57,000 support. It is currently (12:00 PM UTC) showing signs of more losses and it could drop below USD 56,000.

Similarly, most major altcoins are declining. ETH is down over 5% and it even broke the USD 2,000 level. XRP/USD topped near USD 1.100 and corrected over 12%.

Total market capitalization

Bitcoin, Ethereum and Altcoins Lose Steam, Correct Lower 101
Source: www.tradingview.com

Bitcoin price

After losing momentum above USD 58,000, bitcoin price started another decline. BTC traded below the USD 57,200 and USD 57,000 support levels. The next major support is near the USD 55,500 level, below which there is a risk of a sharp decline in the coming sessions towards USD 52,000.

On the upside, an immediate resistance is near the USD 57,000 level. The main resistance is now forming near the USD 57,000 and USD 57,200 levels.

Ethereum price

Ethereum price failed to clear the USD 2,120 resistance zone, resulting in a bearish reaction. ETH broke the USD 2,075 and USD 2,050 support levels. The price even broke the USD 2,000 level and it may possibly test the USD 1,920 support zone.

On the upside, the price might face resistance near USD 2,050. The main resistance is still near the USD 2,120 level, followed by USD 2,150.

BNB, ADA, litecoin, and XRP price

Binance Coin (BNB) topped near USD 415 and it started a major decline. BNB dropped below the USD 385 and USD 380 support levels. It is now approaching the USD 350 support zone. Any more losses could lead the price towards the USD 332 level. On the upside, the price could struggle near USD 380 and USD 382.

Cardano (ADA) trimmed all gains and it traded below the USD 1.200 support level. ADA even broke USD 1.165 and it is now trading near USD 1.150. Any more losses might call for a move toward the USD 1.050 level. On the upside, the bulls might struggle again near USD 1.200.

Litecoin (LTC) failed near USD 245 and it started a fresh decline. LTC traded below the USD 225 support and it is now approaching USD 212. The next key support is at USD 205. The main support is near the USD 200 level (the last key breakout zone).

XRP price spiked above USD 1.10 and recently started a downside correction. It traded below the USD 1.02 and USD 1.00 support levels. If there are more losses, the bears are likely to aim for a test of the USD 0.925 level. Conversely, there might be a fresh increase above the USD 1.02 level.

Other altcoins market today

Many altcoins are down over 10%, including STX, DENT, CRO, FTM, FIL, ONE, ANKR, TRX, SC, UMA, BTT, XLM, ATOM, KSM, AAVE, and DOT. BTG and QTUM are still in green, but are also trimming their strong gains.

To sum up, it seems like bitcoin lost momentum above USD 58,000 and reacted to the downside. If BTC slides below USD 55,500, it could result in a sustained decline.

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Bitcoin, Ethereum and Altcoins Lose Steam, Correct Lower 102
Binance Boss CZ Only Has Eyes for Bitcoin and BNB
Binance Boss CZ Only Has Eyes for Bitcoin and BNB 101
Changpeng Zhao. Source: Instagram, Binance

Changpeng “CZ” Zhao, the head of Binance, one of the world’s biggest crypto exchanges, said that his crypto portfolio is made up entirely of bitcoin (BTC) and his own company’s binance coin (BNB).

In a Twitter post, Zhao wrote that while Binance “holds a bit of everything listed,” his own personal holdings comprise of “some” BTC he “bought in 2014” and BNB, of which he said had “higher volatility and risk than BTC.”

But he dismissed all other altcoins, including ethereum (ETH), writing that he “[doesn’t] have time to research other coins.”

“Many people,” he concluded, “Still don’t know to save on fees using BNB.”

Binance’s token and blockchain protocol has set itself up in direct competition with the Ethereum network, where spiraling gas prices and scalability issues have been a constant irk for many of the protocol’s users.

However, it likely equates to a huge stash of tokens.

In an interview with Bloomberg, Zhao also commented that “close to 100%” of his net worth was “invested in crypto.”

He said,

“I don’t own any fiat. The physical stuff that I own is probably negligible in terms of my net worth. So this is a concept shift. I’m not using crypto to buy fiat, I’m not using crypto to buy houses. I just want to keep crypto. And I don’t plan to convert my crypto into cash in the future.”

He also spoke of how he first developed an interest in bitcoin, claiming that he had been introduced to the matter by Bobby Lee, the then-CEO of BTC China, in 2013, as well as the investor Ron Cao, then at Lightspeed China Partners, who “brought the concept up at a friendly poker game.”

He recounted,

“[Lee and Cao] said, ‘CZ, you should convert 10% of your net worth into bitcoin, because there’s a very small chance it will go to zero and you will lose that 10%. There’s a high chance it will go 10x, and then you would double your net worth.’ And I was like, well, that’s a pretty serious proposition.”

He explained that he then preceded to download the Bitcoin white paper, noting,

“Back then, there wasn’t a whole lot of educational content online. I read the white paper. I understood it pretty quickly, coming from a technology background.”

Pretty soon, he was sold on the idea, claiming that he eventually sold his apartment and quit his job so that he could buy BTC and later joined Blockchain.info (now better known as Blockchain.com), where he worked for “just under a year or so,” before realizing that his “strength” was in “the exchange-trading business.”

But although Zhao conceded that he buys “a lot of gadgets,” he claimed not to have a car or a house as he thinks they are poor sources of liquidity. He opined,

“The problem with cars, houses, is that I just don’t think they’re liquid. As soon as you buy them, you can’t trade out of them that easily. You can rent an apartment or stay in a hotel – that gives you much higher liquidity. So I’m one of those guys who value liquidity much more than owning something. I actually prefer not to own anything.”

At the time of writing (12:20 PM UTC), BTC trades at USD 56,142 and is down by almost 5% in a day and 4% in a week. BNB dropped by more than 5% today, trimming its weekly gains to less than 18%, and is trading at USD 365. It rallied by 2,309% in a year, while BTC jumped by 670% in the same period of time.

1INCH is simultaneously listed on many major exchanges

After being on Mooniswap, the 1INCH token was quickly announced by major exchanges such as Binance, Huobi, and Poloniex.

The most significant should be Binance, at 12:00 noon on December 25. The supported trading pairs are 1INCH / BTC and 1INCH / USDT. Users can fund the exchange to prepare for the transaction after Binance completes the maintenance.

Previously, OKEx exchange allowed to deposit 1INCH at 7:00 am. Once the amount is loaded up to the standard, OKEx will begin to support the transaction. Trading pairs supported by OKEx include: 1INCH / USDT, 1INCH / BTC, 1INCH / ETH.

Similar to OKEx is Huobi. This exchange also allowed 1INCH to be loaded today 25/12. However, the trading pair will be opened once the deposit is met. The supported trading pairs are similar to OKEx with BTC, ETH and USDT.

Especially on Huobi there is also a remarkable bonus program. Users who deposit 1INCH from an address outside of Huobi will share a pool of rewards worth 20,000 USDT.

In addition, there is also a famous exchange that also supports listing is Poloniex.

We will soon update you to read the list of exchanges listed in 1INCH in the near future.