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The cryptocurrency market is still recovering from last month’s volatile correction. Bitcoin (BTC) was up around 4% in the last 24 hours at the time of publication and maintaining support above $ 35,000. Technical data suggests a limited rise towards $ 40,000 and $ 45,000 as resistance remains strong.
Bitcoin (BTC) trading around $ 37,800 at 9:00 p.m. UTC (4:00 p.m. ET). Gain of 4.25% over the previous 24 hours. 24 Hour Bitcoin Range: $ 35,805.21 – $ 38,214.79 (CoinDesk 20) Ether (ETH) trading around $ 2,756 at 9:00 p.m. UTC (4:00 p.m. ET). Gain of 8.82% over the previous 24 hours. 24 hour range of ethers: $ 2,539.65 to $ 2,802.82 (CoinDesk 20)
Traders were greeted with a mix of good and bad news before June. The Bad: The U.S. Securities and Exchange Commission (SEC) chose last week to delay a decision on the WisdonTrees Bitcoin ETF app. At the end of April, the SEC postponed at least one decision on the VanEcks Bitcoin ETF application until June.
The delayed approval of a bitcoin ETF could leave traders looking elsewhere for signs of directional pull. Bitcoin, ether, and other larger cryptocurrencies have remained stuck in relatively narrower ranges over the past few days, but some analysts are hopeful that the bullish sentiment will return.
Bitcoin goes to Miami
Some are envisioning the 2021 Bitcoin in-person conference in Miami starting Thursday as a possible positive influence on price movement. This is similar to the so-called CoinDesk consensus effect, an unproven theory that crypto prices typically recover during or immediately after the conference.
Mati Greenspan, CEO of Quantum Economics, calls it the Miami Effect.
The idea is that a gathering of several thousand people speeds up networking, sharing ideas and making deals can be a boon to grassroots growth in the industry, Greenspan wrote in a published newsletter. Wednesday.
Elsewhere, Dogecoin (DOGE) continues to rally and is up around 20% in the past 24 hours at the time of writing.
Dogecoin howls at the moon
DOGE’s rally has taken center stage from Tuesday’s blog post published by Coinbase, indicating that traders on its Pro platform can start trading the cryptocurrency as early as Thursday.
Dogecoin was trading at 41 cents at the time of writing, representing a 32% gain over the past 24 hours.
People are always going to be cautious in the long run, but those early days will eventually have some ability to attract mainstream investors and not just the Robinhood / Reddit army, said Edward Moya, senior market analyst at Oanda.
We have had consistent net buyers on Dogecoin, indicating the general optimism surrounding it as it gains popularity across all demographics, Voyagers CEO Steve Ehrlich said in an interview with CoinDesk.
However, some analysts see the lack of fundamentals as a possible deterrent for the DOGE rally. And technical data suggests limited further upside despite the near-term rebound.
The full story of CoinDesks Lyllah Ledesma here.
Volatile May Leaves Bitcoin In A Fork
Bitcoin suffered its third worst monthly loss of around -35% over the past month, leaving analysts wondering if sellers have completely capitulated.
Last month’s correction was slightly better than some of the most notable bear markets in history in 2012 and 2018, as you can see in the graph below, wrote 21Shares, a Switzerland-based asset manager. , in a newsletter published on Tuesday.
The graph shows the monthly performance of bitcoin since 2012.
Source: 21Shares
Meanwhile, fundamentals are improving, suggesting that selling pressure may ease this month.
We are seeing fundamental buying pressure from long-term investors representing over 50% of the investor base, 21Shares wrote.
Traders should look for a confident move above $ 40,000 or a sell below $ 30,000, Arcane Research wrote in a bulletin on Tuesday.
Blockchain activity is declining
Activity on the Bitcoin blockchain has declined sharply with the latest price correction, and the number of daily active addresses is now at its lowest since November of last year, according to Arcane Research.
Historically, sharp declines in blockchain activity have coincided with similar market highs in 2017 and 2019. The current decline in active Bitcoin addresses suggests another downside for the cryptocurrency.
The graph shows the number of active BTC active addresses with price overlay.
Source: Arcane Research
Ether makes a slight comeback
Ether has struggled to maintain moves above $ 2,800 over the past week as the corrective phase sets in. However, the second largest cryptocurrency appears to have support over bitcoin.
ETH / BTC (the price of ether in terms of bitcoin), shown below, is holding above the 50-day volume-weighted moving average with resistance of around 0.08.
The daily ETH / BTC chart shows the support and resistance levels.
Source: TradingView
Digital assets on CoinDesk 20 are mostly green on Tuesday. Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):
algorand (ALGO) + 15.24% dots (DOT) + 16.18% Oil is up 1.40%. Price per barrel of West Texas Intermediate crude: $ 68.68. Gold was in the green, up 0.30% and at $ 1,910 at time of publication. Silver wins, up 0.65% and changes hands at $ 28.20. The yield on 10-year US Treasury bonds fell to 1.59% on Tuesday.
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