After being in the red for weeks, Bitcoin is on the rise again now. Ethereum also recorded a strong price increase. Over the past week, Bitcoin is up 15% and Ethereum up 22%. Is the market downturn coming to an end?
Pump Bitcoin overnight
Bitcoin, the world’s largest currency by market cap, is currently trading at $ 21,763. It’s up about 10% in the last week – 7% in the last 24 hours alone, CoinMarketCap data shows.
Similarly, Ethereum has also seen significant gains, the base rose as high as $ 1,238, meaning: it has gained 7% since yesterday and even 19% in the last seven days.
The rest of the cryptocurrency market seems to be following suit with Solana up 4%, Polkadot up 5%, Cardano and Dogecoin up about 3% over the last 24 hours.
Bitcoin & Ethereum on a strong course – the crypto markets are recovering
Blockchain analyst Joe Burnett offered some reflection on what might have happened. He cites the correlation of Bitcoin with the NASDAQ. It’s up 5% over the last five days. He also cites the recent sales of bankrupt companies such as Three Arrows Capital, which have created a “local floor”.
“These mandatory sales have certainly helped to create at least a local floor from which the price could move up.”
In his view, the Bitcoin mining industry also influences the price of the cryptocurrency.
“We have been capitalizing miners for 30 days (according to hash ribbon metrics) and there are signs that it will end soon if the price stops falling.”
Miners ’capitalization would increase near-term sales pressure as miners liquidate their BTC deposits to continue operations, Burnett said.
In the ongoing winter of cryptocurrencies many cryptocurrencies are going to zero, some companies have gone bankrupt, a wave of layoffs has arrived, and a liquidity crisis has ensued. Does this sudden bounce mean that market fears are easing?
Fear of leaving the markets
Kraken’s Dan Held seems to think so. He argues that “big build” is a continuous domino effect – where one crypto company fails and another company disappears – “embedded” by FTX. FTX is an exchange whose CEO says he still has billions of dollars to use for struggling crypto companies if necessary.
What’s the bottom line for Bitcoin?
– Feels mass-built w / FTX included
– Celsius paying off their BTC loan
– Bankruptcy already filed
– Inflation is feared to subside
– Dan Held (@danheld) July 7, 2022
Similarly, Cubic Analytics analyst Caleb Franzen sees the 200 – day moving average of Ethereum and Bitcoin as a metric – if currencies rise above – that traders would see more green on the charts.
Another important iteration for $ ETHBTCthis time on the 200 day moving average cloud (EMA & SMA).
This teal range was a former support, now acting as a potential resistance.
If we can break above this range, it could be a key risk-on signal. pic.twitter.com/mJWbEXMZRh
– Caleb Franzen (@CalebFranzen) July 7, 2022
Others are less certain. Will Clemente, a Bitcoin analyst at the mining firm Blockware, points to $ 22,520 as a key metric on the 200-week Bitcoin (WMA) moving average. If the Bitcoin price stays below this level, the price decline may continue. Clemente:
“The reaction with the 200WMA should be sufficiently exposed.”
Reaction at 200WMA should be fairly telling.
A reclaim of it, which would basically do everything under bias, would be a nice swinging fix for traders and a prob of some trend algos. There would be no need for the rejection. pic.twitter.com/6DRvWqMMeN
– Will Clemente (@WClementeIII) July 7, 2022
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Last updated on July 8, 2022
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