Crypto-versed: bitcoin extends its world-beating run
The price of Bitcoin has rallied above $30,000 as traders position for the next bull market.
In this week’s Crypto Verse, we discuss the movements in crypto markets in the past week and analyze the price action of Bitcoin, Ether, and the Crypto 10 Index.
Crypto prices continue world-beating performance
A former US President once called 30,000 on the Dow a very sacred level.
Although it remains well off its previous bull market highs, Bitcoin’s price has pushed above $30,000 in recent days, making it one of the best-performing assets in global markets in 2023. Bitcoin has gained 82.23% for the year.
Meanwhile, IG’s Crypto 10 Index, which is a weighted index of 10 major cryptocurrencies, is only 70% higher, revealing the narrowness of the rally in crypto markets, and the appeal of the major tokens.
Crypto 10 Index weekly chart
Several reasons are driving the strength in crypto prices.
Signs of peak inflation in the US are driving down future rate expectations and benefitting non-yielding assets. Instability in US banks has pushed some investors to own “anti-fiat” assets. Improving market sentiment broadly has also bolstered risk appetite and driven flows into higher beta asset classes.
While there may even be a greater push into digital assets as an alternative asset class as investors seek novel weighs to find diversification in an increasingly challenging investment environment.
Three cryptos to watch
Bitcoin prices are moving higher and pointing to a potential long-term trend reversal. After breaking through 30,000, the price is trading above the 200-week MA, with $34,000 as the next key level of support to watch.
On the downside, a confluence of support levels can be found around $US25,000.
Bitcoin weekly chart
Ether’s price has outperformed other crypto assets, after the Ethereum network’s Shanghai exchange update, which has increased inflows of the crypto into crypto exchanges, and boosted its price.
Momentum has moved to the upside with the price breaking above the upper bound of its trend channel. 2100 appears to be offering some support, while the 100-day MA may be the key level to watch above that.
Ether weekly chart
Ether/Bitcoin has outperformed its smaller counterpart for most of 2023, quietening speculation about an imminent flippening. The pair has rebounded recently, as it looks to push towards the upper bound of a downward trend channel.
Several moving averages stand in the way of a greater push higher, while buyers have emerged below 0.06.
Ether/Bitcoin weekly chart
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