After several weeks of being in the red, Bitcoin and Ethereum climber.
Bitcoin, the world’s best cryptocurrency by market value, is $ 21,663, up about 10% in the last week and up 6% on Thursday alone, per CoinMarketCap data. Similarly, Ethereum has also seen remarkable gains, up to $ 1,238 or 7% on Thursday and 19% over the last seven-day period.
The rest of the cryptocurrency market seems to be following suit Solana up 4%, Polkadot up 5%, Cardano up approx. 3%, and Dogecoin up 3,% in the last 24 hours.
Blockware analyst Joe Burnett has some thoughts on what might happen. He cited Bitcoin’s correlation with NASDAQ – which has risen 5% in the last five days – as well as recent sales from bankrupt companies such as Three Arrows Capital create a “local bottom.”
“This forced sale definitely helped create at least a local bottom from which the price could go up,” Burnett said. Decrypt via Twitter DM.
In his view, the Bitcoin mining industry also affects the price of cryptocurrency.
“We’re 30 days into a miner’s capitulation (according to hash tape metric), and there are signs that it could potentially end soon if the price does not fall further, Burnett said. “Miners’ capitulations increase short-term sales pressure as miners liquidate their BTC taxes to continue their business.”
The ongoing cryptocurrency winter has seen cryptocurrencies go to zeromultiple companies file for bankruptcya wave of layoffsand a liquidity crisis. Does this sudden rise mean that market fears are waning?
Kraken’s Dan Held seems to mean it, arguing that the “mass transmission” of a continuing domino effect – where failure of one crypto company affects another – has been “contained” by FTX, a stock exchange whose CEO says he still has billion dollars to distribute to ailing crypto companies if necessary.
Similarly, Cubic Analytics analyst Caleb Franzen sees Ethereum and Bitcoin’s 200-day moving average as a calculation that – if currencies climb above it – could cause traders to look more green.
Others are less secure. Will Clemente, Bitcoin analyst for the mining company Blockware, pointed to Bitcoins 200 week moving average (WMA) of $ 22,520 as an important calculation. If Bitcoin’s price remains below this value, the price decline may continue.
“The response at 200WMA should be quite telling,” in Clemente.
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