The total capitalization stands at 1,061 billion dollars.
Rises in cryptocurrencies continue this Wednesday, with Bitcoin above $23,000, a price level that has resisted the digital asset in the last month. In the rest of the tokens, the Ethereum continues to be news and settles above 1,500 dollars, while the tokens, in general, are in the green and leave rises of up to 50% for the ether and more than 70% for the MATIC (Polygon) in the last week. The total capitalization is located at 1,061 billion dollars.
Bitcoin is enjoying this period of improving sentiment, a weaker dollar, and a dearth of worrying new headlines. It is still above $23,000, although yesterday’s foray above this figure sent the price back rapidly. “While the rebound has been impressive, I am still struggling to see the sustainability of it. Technically, it still looks like a consolidation pattern after a sharp drop, which is typically bearish,” warns Craig Erlam, an analyst at Oanda. “Of course, that doesn’t mean it will be this time, but it still seems like the most likely path,” he adds.
For the rally to continue, the bulls want the price to sustain above $21,500, which is in confluence with the 20-day moving average. “Since Bitcoin’s fall from $45,000, this moving average has had 6 retests and 6 rejections, so $21,500 is a price level to hold,” Marcus Sotiriou comments. “If the price fails to retest and reject the daily trend after a 60% drop in 4 months, this would be a telltale sign of market weakness,” he says.
Signals of the Upside
There are some signs that we could see a continuation to the upside as the Coinbase Premium Gap has rallied to positive values over the past week. The Coinbase Premium Gap is an indicator that measures the difference between the Bitcoin price on Coinbase and the price on Binance.
This indicator has been negative for several months during the downtrend of the market, showing that the value of Bitcoin on Coinbase has been lower than that of Binance. However, data from Crypto Quant shows that Coinbase’s premium gap has increased significantly recently. Sotiriou believes that “this could be a sign that US investors are buying Bitcoin more than the rest of the world, as Coinbase is used primarily by US investors.”
The expert explains that this could also indicate that institutional investors “are becoming more aggressive buyers, as Coinbase has a higher institutional percentage of users compared to Binance and institutional buying pressure is always a positive sign for bulls.”
The fact that this indicator has risen, while the terrible news is no longer negatively affecting the market, suggests that we could see more gains in the coming weeks.
Some Experts Opinions
Paul Levy, Senior Lecturer at the University of Brighton, opines that, “Bitcoin is likely to recover in 2023, which may actually lead to inflated expectations and further volatility.”
On the other hand, Vetle Lunde, an analyst at Arcane Research, places the bottom of bitcoin at $13,000 and the level at which it will end the year at $20,000. “A host of negative forces have crushed Bitcoin…further hardening and unwinding of crypto bad debts will create sobering times ahead, and investors should tighten their belts for more hardship,” he stated.
By Audy Castaneda
