After Elon Musk said that Bitcoin and Ethreum price seems high, the entire market went bearish. The prices of both cryptocurrencies fell by more than 20% in just a week. But after reaching extreme lows, the prices have bounced back, and investors are relieved. During this price recovery period, one of the major hurdles for Bitcoin was the $52,000 price that was giving serious resistance to the coin. It fell back twice from this price point. And similarly, Ether struggles at the $1870-$1880 price point and has already fallen twice from the same point. But since then, it hasn’t been able to recover even though Bitcoin has made a new high.
Ether struggles to break resistance.
Ethereum is having a network crisis due to the high fees that every transaction incur. People have been abandoning the network in search of better and more efficient alternatives to the currency. Even though the co-founder of the currency has announced a new protocol for the Ether network that plans to burn tokens in every transaction, it struggles to reach the $2000 price point. Though it seems to be a good idea to burn tokens causing negative inflation, it is said to affect traders’ profitability.
It seems that the coin is bowing down to the bear market as it isn’t able to move up despite the strong co-reliance with Bitcoin. At the time of writing this article, Ethereum is trading at $1796, 0.5% below the last day’s closing price. The signs are not all negative for the coins, and there are also some good signs too. This includes the Awesome Oscillator above the zero benchmarks and a constant bullish move to outweigh the market bears.
Bitcoin’s dominance
Bitcoin seems to be the one deciding its own market. The constant ups and downs of other altcoins are not effecting the resumed rally of the cryptocurreny. After breaking the $52,000 price resistance, it rallied to $58,000 with some market corrections in between. While the demand for other coins like Etherereum or Polkadot has been varying, the demand for Bitcoin is one the rise. With new investments from companies every other day, Bitcoin is acquiring the balance sheet of major firms.
Just some time back, Goldman Sachs said they are seeing an increased demand for crypto from their clients. At the same time, JP Morgan filed an investment vehicle with the SEC to track firms’ performance with exposure to Bitcoin. As of now, the signs of the market are mostly positive as there are more buyers than sellers, but there is a constant try by these sellers to pull the price down. Still, after all that, with some ups and downs, the curreny was able to make an all-time high of $58,175 and is currently trading at $56,500. A breakthrough of the $60,000 price point can open the market too much stronger bullish runs.
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