Cryptocurrencies traded higher today, fuel for the industry's gains added by the major indices rising during yesterday's Fed conference. Will digital assets maintain the bullish momentum?
- Total market capitalisation is back above US$1 trillion. Bitcoin soared above USD 23,000, Ethereum above USD 1,600. The major cryptocurrencies have traditionally been followed by altcoins like Uniswap and Bitcoincash, with gains of up to a dozen per cent. The unwinding has led to the liquidation of nearly USD 202 million worth of short positions;
- Cryptocurrencies remain extremely volatile instruments. A negative US GDP reading (-0.9% vs 0.5% expectations) weakened US indices. Yesterday, the cryptocurrency market also received news of the sale of more than 1.4 million shares of cryptocurrency exchange Coinbase by the ArkInvest fund. The fund is managed by Cathie Wood, who has an interest in blockchain technology;
- Cryptocurrency exchange FTX has challenged Coinbase to make shares available for trading in all US states. The FTX exchange has acquired securities trade settlement provider Embed Financial Technologies. The FTX token registered 10 per cent gains.
Bitcoin entering above $22,600 has once again pierced the 200-session moving average (200WMA) on the weekly interval and is defending the upside scenario. The average has historically indicated a ramming price bottom. At the same time, we see 2 other key averages 111DMA and 200DMA. The first average represents short-term, psychological resistance which stems from the Pi Cycle Top which runs around $35,000 and will act as long-term resistance for the bulls. Source: Glassnode
