Bitcoin is flying high
Key takeaways: Bitcoin makes new ATH, but faces significant challenges ahead. ETH rally tapering off or just getting started
Over the weekend, Bitcoin reached a new all-time high of $61,957, only to collapse the very next session as traders locked in profits. As selling pressure mounted, price was aggressively pushed back to local support at $53,000. Since establishing support, buyers and sellers have been engaged in a game of tug-of-war over price all week. At the time of press, Bitcoin is trading at $58,527, which is towards the higher end of this new range between $53,000 - $62,000. This quick recovery from the $53,000 lows can largely be attributed to Federal Reserve chairman Jerome Powell announcing that interest rates will not increase until 2023. If Bitcoin wishes to continue its parabolic rise, it will need to close above the $61,957 on the daily chart, ideally with significant volume.
Ethereum has experienced somewhat of a lackluster rise in price compared to dapps. Even though ETH is up more than 20% against BTC YTD, it pales in comparison to the gains seen by many other projects in the space. Interestingly enough, many of the aforementioned dapps are actually operating on Ethereum’s ERC-20 ecosystem.
The ETH/BTC chart shows that ETH has declined back into the 0.0295 - 0.031 sats range. This range has served as support/resistance on numerous occasions, however the most recent and notable was in December 2020. Historically ETH consolidates in this range for a short period before making a definitive move in either direction. With the current market trajectory in mind, coupled by the network effect taking place on the Ethereum network, it is likely that we see it attempt a breakout above 0.034 in the near term.
Price action in the altcoin sector has been mostly mixed. The most significant gainers have been those that have been added to the Grayscale's Investment trusts. The five new investment products include: Basic Attention Token ($BAT), Chainlink($LINK), Decentraland ($MANA), Filecoin ($FIL) and Livepeer ($LPT), all which have seen double digit gains since announcement. These new additions put the number of crypto products Grayscale offers to 13.