For a few days now, the crypto market is on the rise. After falling below 900 dollars a few weeks ago, the price of Ethereum is now close to doubling. If the boom is not so great for Bitcoin, the mother of cryptocurrencies is also raising the bar.
Bitcoin: Head for $25,000!
When the market is healthy, so is Bitcoin. Despite the collapse of Bitcoin’s dominance, the mother of cryptocurrencies still weighs more than 40% of the total market today. The graph below, accessible from the Tradingview platform, shows the good health of Bitcoin.
This 1 hour chart allows us to see that Bitcoin is flirting with $24,500 yesterday afternoon. A level that is still relatively close to the level reached at the end of July for the monthly close.
But the decisive point is to seek a little higher, at the threshold of 25,000 dollars. A psychological resistance level, if broken above this threshold, could continue to add to bullish sentiment, at least in the short term. Over the next few days, this $25,000 point should merge with the asset’s moving average price over the past 100 days. Going back above this threshold would send a positive message to buyers.
Recall that Bitcoin has not seen above $25,000 since June 13th. At this time, the mother of cryptocurrencies was sliding from $28,000 to $20,000. As of this writing, Bitcoin is trading at $23,618, down 2.32% in the last 24 hours, in a market that is down 1.52%.
Ethereum flirts with 1,800 dollars!
For Ethereum, it is also euphoria. In the last 30 days, the prince of cryptocurrencies has increased by 46%. Over the period, only the Polygon project (MATIC) outperformed Ethereum.
The graph below also shows the good momentum that Ethereum has found:
At the time of writing, the price of Ethereum is $1,741.25. Yesterday, the asset came to test for the first time the threshold of 1,800 dollars, a level not reached since the beginning of June. A price level that the markets have rejected. If many are already dreaming of getting back over 2,000 dollars before the end of the month, there is still a long way to go. And The Merge may be the main actor in this story!
The Merger: the driving force of the market?
For many observers, the rules of the game have changed slightly in recent weeks. Accustomed to dictating the LA and bringing rain and light to the crypto market, Bitcoin seems to have lent its conductor’s clothes to Ethereum. And for good reason, the second blockchain is about to experience this year’s crypto event: The Merge. Merge should allow the Ethereum protocol to become much less energy intensive. By moving from Proof of Work to Proof of Stake.
As with the Polkadot parachain, The Merge might as well be a textbook case of “Buy the rumor, sell the news“. Because if the price has been steadily increasing in recent weeks, the hypothesis of a massive resale after the transition from Proof of Work to Proof of Pledge cannot be excluded.
But other elements are particularly expected this week as well. Like the inflation figures in the United States. At 9.1% over 12 months rolling into June, the markets are not expecting miracles. However, they are optimistic that the July figures can begin to reverse the trend. Other macroeconomic indicators such as the level of inflation in China or the figures on the GDP of Great Britain could also pinch prices on the markets!
The crypto market, not out of the woods yet!
Despite the sequence of good sessions, caution remains in order. Whether on the stock market like that of cryptos. The recent tweet from Gargavin’s Twitter account has cooled the risk markets a bit. By revealing that Larry Fink, the CEO of BlackRock had just massively sold BlackRock shares.
Although the asset manager has just entered into a partnership with Coinbase,Fink would have sold more than 44,000 BlackRock shares. His final sale of that amount? Days before the wave of COVID-19 in March 2020. On Twitter and elsewhere, people are now wondering if Fink knows something most people don’t.
On the forums, the hypothesis of the return of Bitcoin close to $10,000 is not weakening, despite a significant improvement in the Fear and Saint indicator. Indicator found today at 42/100, that is to say the highest level since last April. On July 30, the indicator also touched this level of 42/100.