Bitcoin ended the first week of March with little fanfare as the market retreated 21% after the previous week’s slump. There are more signs that the global economy may recover faster than previously expected, and traders are speculating on what that could mean for the largest cryptocurrency.
- Bitcoin (BTC) is trading at $ 49,196.78 as of 9:00 PM UTC (4:00 PM ET). Climb 1.93% in the last 24 hours.
- Bitcoin 24-hour range: $ 46,393.39 – $ 49,462.13 (CoinDesk 20)
- BTC is trading above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.
Bitcoin trading on Coinbase
Source: TradingViewSource: CryptoCompare
Bitcoin’s subdued price activity this week was reflected in the trading volume of eight CoinDesk tracks with a focus on US exchanges. It’s been flat for the past week, about a third of the levels seen recently.
“Bitcoin is consolidating around $ 50,000 after recovering from its lows earlier this week,” said Jason Lau, chief operating officer of the San Francisco-based crypto exchange OKCoin. “Recently, price action has been in this range while the open interest in Bitcoin futures has also remained constant.”
According to Friday’s IntoTheBlock newsletter, $ 50,000 also appears to be a major short-term resistance level that cites a key blockchain data metric in / out of money at price (IOMAP).
In / Out of the money for the price
“A large cluster of addresses (1.46 million) and volume (650,970 BTC) was purchased for just under $ 50,000,” IntoTheBlock wrote in the newsletter. “This price range, which has already seen a high level of trading activity, is likely to act as a strong resistance in the short term, as investors in this price range may be targeting breakeven points on their positions at this point.”
At the same time, another large cluster of addresses and volumes currently being bought in a range of $ 45,600 to $ 47,000 should offer strong support, data from IntoTheBlock shows.
“Ultimately, a break above $ 45,000 could mean Bitcoin continues to be tracked, while a break above $ 50,000 suggests it’s ready for new highs,” added IntoTheBlock. “These are the values to look out for before you are sure that the fix is or not.”
Investors also need to weigh macro factors, including a better-than-expected job report from February in the US and rising bond yields.
Continue reading: How Bitcoin Could Be Affected by February’s Positive Jobs Report
Ether is worse than Bitcoin, the market is watching the hard fork in July
Ether (ETH), the second largest cryptocurrency by market capitalization, gained slightly on Friday, trading at around $ 1,534.25 and in the green at 0.11% within 24 hours from 9:00 PM UTC (4:00 PM ET).
At press time, the price of Ether was down about 25% from its all-time high of $ 2,036.55 on Feb.19. This is a steeper drop than the 17% drop in Bitcoin from a record $ 58,332.36 on February 21.
The main reason Ether is underperforming is because high ether prices are affecting Ethereum’s primary use case as a smart contract platform, making transactions extremely costly and leading to activities being shifted to other platforms, OKCoin’s Lau said.
As CoinDesk reported, the Ethereum Improvement Proposal (EIP) 1559 is set to go into effect in July – regardless of the mining industry’s dissatisfaction with the proposal – with the aim of addressing part of the problem of Ethereum’s high transaction costs.
Continue reading: Ethereum’s July overhaul of the EIP 1559 fee market is lit in green
Digital assets on CoinDesk 20 are mostly on Green Friday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
- The Asian Nikkei 225 closed down 0.23%.
- The FTSE 100 in Europe was also lower at 0.31%.
- The S&P 500 in the US is in the green 1.95%.
- Oil rose 3.82%. Price per barrel of West Texas Intermediate Crude: $ 66.27.
- Gold was in the green at 0.09% and at press time at $ 1,698.51.
- The US 10-year Treasury yield fell to 1.556% on Friday.