The price of bitcoin reached new heights after Tesla announced to the public that it had added $1.5 billion to the company’s balance sheet. Bitcoin reached an all-time high (ATH) of $48,216 apiece and has since lost a hair. While crypto-enthusiasts are optimistic, some advocates and analysts believe that crypto assets could be overbought and that bitcoin prices could see a decline as the Chinese New Year approaches.
The market capitalization of the multi-billion dollar crypto economy continues to grow.
Bitcoin (BTC) has seen significant gains over the past 24 hours, with the cryptocurrency hitting ATH at $48,216 per coin. In the past hour, the crypto asset has changed hands at prices ranging from $46,500 to $47,100 each, with a global trading volume of $39 billion.
Of the $1.32 trillion of 8,416 cryptocurrencies and 33,534 exchanges, BTC now dominates with 62.9%. BTC is up 27% this week, 18% in the past month, 188% over a 90-day period and 360% against the US dollar over 12 months. Ten years ago today, the price of bitcoin reached $1 and yesterday was the largest daily candle in history.
The largest daily candle in bitcoin history.
Low: 38,058 – Maximum: $46,929 pic.twitter.com/MJg2e4H3VK
– View bitcoin (@visbitcoin) 8. February 2021
As of 4:02 a.m. EST on Tuesday, data from markets.Bitcoin.com shows that Ethereum (ETH) has reached the $1,800 area. ETH is currently trading at $1,748 apiece and has about $13.2 billion in global trading.
Polka Dot (DOT) trades at $22.99 per coin and has supplanted Cardano (ADA) after the two currencies competed for the fourth-largest market cap. Cardano (ADA) was trading at $0.68 with $21 billion in volume at the time of publication.
Metric components network status: Ethereum transfers via the onchain exceed the value of Bitcoin transfers
Coin Metrics team and analyst Nate Maddrey said on Tuesday that the two main crypto assets (ETH & BTC) have seen an increase in blockchain metrics.
Blockchain’s BTC and ETH metrics were in full swing last week, Maddry said at the 89th annual meeting. Company newsletter. The proprietary BTC market is up 12.9% this week, while ETH is up 19.6%. BTC and ETH also reached peaks of 3.3% and 12.8% respectively, while both continue to mark new all-time highs, Maddrey added.
Coin Metrics’ analyst continued:
The value of the transfer to the ETH chain has exceeded the value of BTC. ETH’s adjusted transfer value reached EUR 1.5 billion in the fourth quarter. February: more than $19 billion, the highest level ever. The following graph shows the 7-day average of the EPF transmission corrected for auto-dispatch and other disturbances.
Tesla moved the needle
Crypto currency analyst Simon Peters said Tuesday that people should expect a huge shift in the crypto economy after the recent Tesla purchase. Yesterday’s decision by Tesla to invest in bitcoin and accept bitcoin as payment for its own products has really set things in motion, Peters said.
Tesla, as a fiduciary shareholder, has decided that it is less risky to have $1.5 billion in bitcoin on its balance sheet than to have $1.5 billion in cash.
– Mike Belshe (@mikebelshe) February 9, 2021
There is already talk of Apple and Google wannabees integrating their own payment systems. The shift to digital consumption is increasing. We expect others to follow in Tesla’s footsteps, and bitcoin payments will become increasingly meaningful for companies that make almost all of their sales online, the Etoro analyst added.
Is bitcoin overheating? Technical indicators say yes
On Twitter, analysts and crypto currency advocates are wondering if bitcoin (BTC) is currently overheating. Linas Beliunas asked his followers on Twitter: Is bitcoin heavily overbought? These indicators suggest that this is the case, he added. Beliunas shared an image from Marketmilk’s data site showing a number of technical indicators.
Milk Market stats from February 9, 2021.
Dairy market statistics show that indicators such as the Bollinger Bands, Relative Strength Index (RSI), Stochastic Oscillator and other signals suggest that BTC is overbought.
However, Tradingveiw’s technical summary is different as it states that BTC is a buy, the moving averages indicate a strong buy and the oscillators should be read as neutral.
Trading Stats Feb 9, 2021.
Chinese New Year Transition
Some crypto-enthusiasts believe there is a high chance of bitcoin (BTC) plunging on Chinese New Year, as the drop in value is traditionally consistent with each Chinese New Year. The 5th. In February 2021, crypto-currency journalist Tyler Reynolds told his 17,000 followers that a correction could be imminent.
The 1. February 2019, Phoon Mei Hui published a report titled Chinese New Year Effect on BTC Market. However, the author indicates that the Chinese New Year dump may not be a reality. We found potentially interesting (but unproven) correlations between BTC price movements and trading activity during the Chinese New Year, Mei Hui wrote at the time. Are the signs convincing? Maybe not, she added.
If I had to guess, Defy has just broken through the saucer and we are down at least 40% from those levels, Reynolds tweeted. ETH and BTC will not fall by 40%. If there is a collapse (which is not clear yet), I would expect a fairly strong rise (
I’ve loaded my arms to buy this upcoming sauce that I think is also outdated, Coingecko founder Bobby Ong wrote to his Twitter followers this week. Chinese New Year sauce. I’m ready. Orders up to 30% of the ATH peak are fixed. We will see if there is a correction this weekend.
Last year’s Chinese New Year was the year of the rat, and this year is the year of the ox or metal bull. But the fact that this pattern has been consistent in recent years does not mean that it will necessarily occur again. For example, in the United States, there are traditionally many year-end sales before January 1. January because of the tax implications. Instead, cryptocurrencies like BTC and ETH reached new price highs and continued to rise in 2021.
What do you think of the recent price movements in the crypto economy? Let us know what you think in the comments below.
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Photo credit: Shutterstock, Pixabay, Wiki Commons, Phoon Mei Hui, Coin Metrics, Marketmilk, Tradingview,
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