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A double-digit drop in cryptocurrency market cap is attributed to a major shift towards bearish sentiment. Bitcoin volumes and volatility are still lower than Ether, but Ethereum-based opportunities have analysts bullish for the future.
Bitcoin (BTC) trading around $ 32,938 at 9:00 p.m. UTC (4:00 p.m. ET). 7.6% loss in the previous 24 hours. 24 Hour Bitcoin Range: $ 31,277 – $ 35,614 (CoinDesk 20) Ether (ETH) trading around $ 2,502 at 9:00 p.m. UTC (4:00 p.m. ET). In the red 8.2% in the previous 24 hours. 24 hour range of ethers: $ 2,328 to $ 2,721 (CoinDesk 20)
The highest Bitcoin volume for over a week
Hourly Bitcoin price table on Bitstamp since June 5.
Source: TradingView
Bitcoin, the world’s largest cryptocurrency by market cap, was down 7.6% on Tuesday at the time of publication. The price was above the 10-hour and 50-hour moving average, a side signal for market technicians.
BTC fell from $ 35,614 at 8:15 p.m. UTC (1:15 p.m. ET) Monday to $ 31,277 at 6:30 p.m. UTC (11:30 a.m. ET) on Tuesday, down 12% based on CoinDesk 20 data Bitcoin then recovered some of those losses, to $ 32,938 at the time of publication.
Persistent concerns about China’s crypto regulatory regime have been among the reasons many investors have looked to bitcoin on the downside. Some traders are also worried about the possibility of a tightening of monetary policy by the US Federal Reserve, which could put downward pressure on risky assets, including cryptocurrencies.
As the price of BTC has fallen over the past 24 hours, trading volume has increased, reaching $ 2.9 billion at press time on Tuesday, the highest since May 28. For 2021 so far, the daily averages have been at a much higher level, around $ 4.9 billion. , based on the spot markets tracked by CoinDesk 20.
Bitcoin has found its way since it was oversold on a medium-term perspective as part of its long-term uptrend, said technical analyst Katie Stockton of Fairlead Strategies. As it stands, we would look for bitcoin to lower against April without damaging the long term uptrend.
BTC volumes on major spot exchanges.
Source: CryptoComparer
Read more: Exchanges see biggest bitcoin flow in 7 months. Reason to rejoice?
When will ether volumes drop below bitcoins?
Hourly Ether price table on Bitstamp since June 5.
Source: TradingView
The second largest cryptocurrency by market cap, Ether, was trading around $ 2,502 at 9:00 p.m. UTC (4:00 p.m. ET), slipping 8.2% in the previous 24 hours. The asset is above the 10-hour and 50-hour moving average, a flat signal for market technicians.
Ether fell from $ 2,721 at 11:15 p.m. UTC (4:15 p.m. ET) Monday to $ 2,328 at 4:15 p.m. UTC (11:30 a.m. ET) on Tuesday, a 14% drop based on CoinDesk 20 data ETH has climbed a bit since then, to $ 2,502 at time of publication.
Short-term ethers momentum improved with the rebound, but medium-term momentum deteriorated, supporting a low from May’s peak near $ 4,380, Fairleads Stockton noted.
The momentum of ethers, in the form of volume, continues to beat bitcoins. For 10 consecutive days, the number of ETH changing hands has exceeded BTC volumes. Analysts are starting to think this could be a longer-term trend, especially given the increase in bitcoin volumes for most of the year.
Spot ether and bitcoin volumes at major sites in 2021.
Source: CoinGecko
Constantine Kogan, a crypto investor and founder of the BullPerks investment community, believes the rise of ethers in 2021 as an institutional asset is just beginning.
In the long run, I think Ethereum will grow, as proof of stake turns out to be a more scalable consensus mechanism, Kogan said of the blockchain.
Price action right now has been stronger for ETH than for BTC, and it has manifested itself in the BTC / ETH correlation as well as in derivatives markets, added Nathan Cox, chief investment officer of the fund. crypto Two Prime.
Read more: Ether price indicator turns bearish for the first time since October
Coverages paying a premium
Ether options open up interest to various strikes.
Source: bias
In the ether options market, strike prices below the price level of $ 2,560 strongly favor put options as traders brace themselves for any possible scenario, including over 64,000 ETH of Total open interest at the ridiculously low strike price of $ 400.
The recent volatility has left traders a little scared and willing to pay for downside protection, Two Primes Cox said. But volatility levels all around have fundamentally collapsed at this point, with BTC [volume] return to the bottom of the range.
Indeed, after jumping to over 170% in 30-day annualized volatility at the end of May, ETH price movements are down to 162% on Monday, based on the most recent data from CoinDesk Research. Additionally, bitcoin price volatility has flattened lately, to 89%.
I expect limited trading from here as new hands are reluctant to commit new capital, and long-term HODLers decide if this is the right price to keep accumulating, Cox said. In the short term, I think ETH continues to outperform.
Other markets
Total market capitalization of cryptocurrencies over the past three months
Source: CoinGecko
The crypto’s total market cap fell by more than 7% on Tuesday, according to data aggregator CoinGecko. In the market for alternative cryptocurrencies, or altcoins, Fairleads Stockton sees an overall stable to bullish outlook for the week ahead.
Most cryptocurrencies have crossed bullish thresholds against bitcoin, with the exception of Stellar and Cardano, which have a neutral relative strength outlook, and Tie, which is expected to remain out of favor as long as the rebound continues. oversold persists in space, Stockton noted. Cryptocurrencies pointing up and to the right should outperform, while the uniswap and chainlink declines suggest they may be lagging behind.
Digital assets on CoinDesk 20 are all down on Tuesday. Notable losers at 9:00 p.m. UTC (4:00 p.m. ET):
Gold was down 0.30% and at $ 1,893 at the time of publication.
Read more: Hamas called on Binance and LocalBitcoins to launder Bitcoin donations
The yield on 10-year US Treasury bonds fell to 1.530 on Tuesday, down 2.4%.
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