Another week, another round of Crypto Tidbits.
At long last, Bitcoin and other large-cap cryptocurrencies are breaking higher. The market leader, for once, has posted a strong move over the past seven days, moving as high as $9,690. The pivotal $9,700 resistance was rejected — Bitcoin now trades for $9,650 as of this article’s writing. Yet analysts remain bullish that the move from the low-$9,000s indicates buyers are back in control.
Chart of BTC's price action over the past week from TradingView.com
It’s important to note that Bitcoin’s macro volatility indicators remain at extremely low levels. This suggests that there is a more violent move on its way, but it still isn’t clear what direction that will take the asset.
By recent standards, Bitcoin’s move has been impressive. But what has been even more impressive is the price action of Ethereum.
In the past 72 hours, the popular altcoin has gained nearly 20%, rallying from approximately $244 to a local high of $289. This rally has resulted in the ratio between ETH and BTC spiking in favor of the altcoin.
Ethereum’s strong outperformance of a majority of other large-cap cryptocurrencies is somewhat of an unknown phenomenon. From a perspective of its charts, the move seemed technical; the asset compressed into the $250 macro resistance, then exploded higher. There are some, though, that have suggested that this was a move caused by fundamentals. By fundamentals, these commentators mean
Certain prominent altcoins, such as Synthetix Network Token and Chainlink, have seen retracements since their local highs. This comes in spite of strength in Bitcoin and Ethereum, which is a market divergence certain technical analysts called weeks ago.
Other altcoins, though, have ripped higher. Take YFI as an example: the altcoin, after starting to trade on decentralized exchanges a week ago, is up by over 10,000%. The cryptocurrency is now in the top-100 cryptocurrencies.
The overall strength of the crypto market this week comes on the back of a rapid appreciation in precious metals. For the first time in around nine years, the price of an ounce of gold surmounted $1,900. And silver surged approximately 10% in 36 hours. Kyle Bass — the CIO of Hayman Capital Management — commented on this trend when he recently said:
Related Reading: Crypto Tidbits: Twitter’s “Bitcoin Scam,” Elon Musk & Dogecoin, Institutions Want BTC & ETH
Featured Image from Shutterstock Price tags: ethusd, xbtusd, btcusd, btcusdt Charts from TradingView.com Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue
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