Markets Turn Green as Bitcoin and Ethereum Lead Mini-Bull Run
In the last week, Bitcoin and Ethereum have risen by 15% and 22% respectively. Are we seeing the end of the market slump? After being in the red for weeks, Bitcoin & Ethereum have started to climb.
Bitcoin is the top cryptocurrency in terms of market capital. It is currently valued at $21,663, an increase of roughly 10% over the previous week, and 6% on Thursday, according to CoinMarketCap data. Ethereum also saw notable gains of up to $1,238 (7% on Thursday) and 19% over seven days.
The rest of cryptocurrency markets appear to be following their lead, with Solana increasing 4%, Polkadot increasing 5%, Cardano rising about 3% and Dogecoin increasing 3.% over the past 24 hours.
Joe Burnett, Blockware analyst, has some thoughts about what could be going on. He cited Bitcoin’s relationship with the NASDAQ, which is up 5% over the past five days, as well as recent sales from bankrupt companies like Three Arrows Capital, creating a “local top.”
Burnett stated via Twitter DM that “this forced selling certainly contributed to creating at minimum a local bottom from which the price could move upwards,” Decrypt via Burnett.
He believes that the Bitcoin mining sector is also affecting the price of the cryptocurrency.
Burnett stated that the miner capitulation is now 30 days old (according to haveh ribbon metrics), and that there are indications that it could end soon, if the price does not fall further. Short term sell pressure is created by miner capitulations, when miners liquidate their BTC Treasurys to continue their operations.
The ongoing crypto winter saw cryptocurrencies drop to zero and multiple companies file for bankruptcy. There was also a wave layoffs and a liquidity crunch. Is this a sign that market fears are receding?
Kraken’s Dan Held appears to believe so. He argues that “Mass contagion”, which is a continuing domino effect – where the failure of one cryptocurrency company affects another – has been “contained by FTX,” an exchange whose CEO claims he still has billions of money to use towards ailing crypto companies if necessary.
Caleb Franzen, Cubic Analytics analyst, sees Ethereum’s 200-day moving average and Bitcoin as a metric that could lead to traders seeing more green if they climb above it.
Others are less certain. Will Clemente is a Bitcoin analyst at mining company Blockware. He pointed out Bitcoin’s 200-week moving mean (WMA), of $22,520, as an important metric. The price slide could continue if Bitcoin’s value remains below this level.
Clemente stated that the 200WMA reaction should be very telling.
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