Market Wrapping: Bitcoin Back Above $ 33K While Ether Up 65% in 2021

Crypto marketers have generally reversed course and are flashing green Friday. Bitcoin crossed over $ 32,000 and ether is rallying hard in 2021 so far.

  • Bitcoin (BTC) is trading at around $ 33,608 at 21:00 UTC (4 pm ET). Earned 5.3% over the previous 24 hours.
  • Bitcoin 24 Hour Range: $ 28,845- $ 33,873 (CoinDesk 20)
  • BTC above the 10-hour moving averages and the 50 hours on the hourly chart, a bullish signal for market technicians.

Bitcoin trading on Bitstamp since January 19.
Source: TradingView

Bitcoin’s price on Friday was uptrend, a marked reversal of the past several days. The price per 1 BTC is based at $ 28,845 around 01:00 UTC (8:00 pm ET Thursday) and since then the world’s oldest cryptocurrency has been up. It reached as high as $ 33,873, according to CoinDesk 20 data, over 17% appreciation in that period. Since then price has settled somewhat, at $ 33,608 at press time.

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Guy Hirsch, US managing director for multi-asset brokerage eToro, says one level of support, where traders grab bitcoin to push the price back up, seems to have led to a reversal Friday. “There seems to be strong support around $ 30,000, as prices rebound to trade north of $ 32,000,” Hirsch told CoinDesk. This consolidation is likely due to smart money continuing to buy bitcoin at a perceived discount.

The historical price of bitcoin over the past year.
Source: CoinDesk 20

Quantitative trading company QCP Capital echoed a similar sentiment about the $ 30,000 level in its most recent investor letter issued Friday. “In the near term, we expect a key battle at the $ 30,000 spot level. This fight for the $ 30,000 weekly closure will be key. ”

In the derivatives market, bitcoin financing rates for exchanges continue to aim toward zero, especially at the FTX positioning, which is currently the lowest, at 0.0318%. This is a sign that the demand to go long is extravagant.

Bitcoin continuously swapped finance in large locations this past week.
Source: Skew

“We pay close attention to the operation of weekend and leverage prices [perpetual] funding rates to measure retail interest, ”QCP noted on Friday.

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In the futures market, total open interest (OI) on the eight exchanges monitored by the CoinDesk 20 stood at $ 11 billion on Thursday, down from an all-time high of $ 13 billion on Tuesday. That is a sign that institutional investors are losing interest and may be taking off some of their positions.

The future of Bitcoin on major locations in the past six months.
Source: Skew

“After the BTC peak two weeks ago, the strength in US hours has lost momentum for the first time,” QCP also noted. “This is a clear indication of demand fatigue from US institutions and corporations [that] have been the main drivers of this bull run. ”

And yet, macroeconomics may be at play, Hirsch eToro pointed out to CoinDesk. “With economic uncertainty continuing as the COVID-19 pandemic continues to rage and central bank currency printing remains unchecked, we expect more people to rotate back to bitcoin in the near future.”

Ether blows out bitcoin in 2021

Ether (ETH), the second-largest cryptocurrency by market capitalization, was up on Friday, trading around $ 1,253 and climbing 4% in 24 hours at 21:00 UTC (4:00 pm ET).

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While bitcoin has gained more than 15% so far in 2021, ether is doing much better, up over 70% over the same time frame. “Ether seems to have finally broken its recent lock-step relationship with bitcoin, as evidenced by its faster recovery after sales, which also appears to have been fired up taking profit after ‘ the second-highest hit crypto asset ever. earlier this week, ”Guy Hirsch noted eToro.

Spot ether (blue) against bitcoin (gold) on Bitstamp so far in 2021.
Source: TradingView

Jake Brukhman, chief executive officer of crypto investment firm CoinFund, said CoinDesk investors are taking a profit from bitcoin and trading into ether and other assets given the 2021 price performance and bitcoin’s high profile.

“I think the big assets are going through high hit dynamics, consolidation and rotation,” said Brukhman. “Bitcoin strikes [a] high, then consolidate and the silver flows into ether. Ether then strikes high, then consolidates and the silver flows into a polkadot. “

Other markets

Digital assets on the CoinDesk 20 are mostly green Fridays. Notable winners at 21:00 UTC (4:00 pm ET):

  • Oil was down 1.8%. Barrel price of raw Central Texas Intermediate: $ 52.05.
  • Gold was in the red 0.85% and at $ 1,853 at press time.
  • The 10-year US Treasury bond yield fell Friday to 1.084 and in the red 2.3%.

The CoinDesk 20: The Most Important Assets to Market