After Tesla stated to the public that Bitcoin’s balance sheet increased by $1.5 billion, the price of Bitcoin soared to new heights. Bitcoin hit an all-time high (ATH), reaching $48,216 per unit and has been depreciating since then. Although cryptocurrency enthusiasts are bullish, some supporters and analysts believe that cryptocurrency assets may be overbought, and as we enter the Chinese New Year, Bitcoin prices may fall.
The trillion-dollar market value of the crypto economy continues to swell
Bitcoin (BTC) has made huge gains in the past 24 hours as the cryptocurrency touched ATH at a price of $48,216 per coin. In the last hour, the trading price of cryptocurrency assets was between US$46,500 and US$47,100 per unit, and the global trade volume was US$39 billion.
Among all 8,416 cryptocurrencies and 33,534 markets, with a market capitalization of $1.32 trillion, BTC’s dominance is now 62.9%. BTC is up 27% this week, 18% last month, 188% in 90 days, and 360% against the US dollar in 12 months.Ten years ago today The price of Bitcoin reached $1 Yesterday was the biggest daily candle in history.
According to market.Bitcoin.com data, at 4:02 AM (EST) on Tuesday, Ethereum (ETH) broke the $1,800 range. Currently, the price of ETH is US$1,748 per unit and captures approximately US$13.2 billion in global trade volume.
Polkadot (DOT) is trading at $22.99 per coin and has replaced cardano (ADA) after the two currencies have been vying for the fourth largest market value. Cardano (ADA) was issued at a price of US$0.68 and trading volume was US$21 billion.
Coin Metrics’ network status: Bitcoin transactions transferred on the Ethereum chain have the highest value
Coin Metrics team and analysts Nate Maddrey It was explained on Tuesday that the on-chain indicators of the top two leading crypto assets (ETH and BTC) have increased.
“The indicators on the BTC and ETH chains have been fully greened in the past week,” Maddrey detailed in the company’s 89th newsletter. “The market value of BTC has increased by 12.9% from last week, while the market value of ETH has increased by 19.6%. The realization caps of BTC and ETH have also increased by 3.3% and 12.8%, respectively, as both continue to set record highs.
The analyst at Coin Metrics continued:
The on-chain transfer value of ETH has exceeded BTC. The adjusted transfer value of ETH reached $19B on February 4th, the highest level ever. The table below shows the average ETH transfer value over a period of 7 days, which has been adjusted to eliminate self-sending and other noisy behavior.
Tesla moved the needle
Cryptocurrency analyst Simon Peters explained on Tuesday that people should expect a huge shift in the cryptocurrency economy after Tesla’s recent purchase. Peters said: “Yesterday Tesla took action to invest in Bitcoin and started accepting Bitcoin because payments for its own products really played a role.”
As the trustee of the shareholders, Tesla executives decided that the risk of owning 1.5B Bitcoin on the balance sheet is lower than the risk of $1.5B cash.
“There are already rumors that Apple and Google are shifting imitators to their own payment systems. The shift to digital consumption is growing. We hope to see others follow in Tesla’s footsteps for almost all businesses that sell online. Said that Bitcoin payments are becoming more and more meaningful.” Etoro analysts added.
Is Bitcoin overheating?Technical indicators say yes
On Twitter, analysts and cryptocurrency supporters are questioning whether Bitcoin (BTC) is overheating at this time.Linas Beliunas asked his Twitter followers: “Is Bitcoin severely overbought? These indicators show that this is indeed the case.” Add to. Beliūnas shared images from the Marketmilk data site, which showed many technical indicators.
Statistics from Marketmilk show that Bollinger Bands, Relative Strength Index (RSI), Stochastic Oscillator and other indicators indicate that BTC has been “overbought”.
However, Tradingveiw’s technical network summary is different, because the summary says that BTC is “buy”, the moving average points to “strong buy”, and the oscillator is “neutral”.
Lunar New Year Transition
Some cryptocurrency enthusiasts believe that Bitcoin’s (BTC) Lunar New Year is likely to come early, because traditionally, the decline in value during each Lunar New Year transition period is consistent. On February 5, 2021, cryptocurrency supporter Tyler Reynolds told his 17,000 followers that a correction could happen soon.
“If I have to guess that defi breaks its parabola, we will fall at least 40% from these levels,” Reynolds Tweet. “ETH and BTC will not fall by 40%. If it does break (still unclear), I expect a considerable rebound (
Coingecko founder Bobby Ong said: “I have the ability to buy the upcoming flood, but I also think it has expired.” write Give his Twitter followers this week. “The Spring Festival holiday, I have prepared it for you. A 30% purchase order from the peak of ATH has been set. Let us see if there is a correction this weekend.”
Last year’s Lunar New Year was the “Year of the Rat” and this year was the “Year of the Ox.” However, just because this model has been consistent over the past few years, it may not be possible. For example, in the United States, traditionally at the end of the year, there will be a lot of sell-offs before January 1 due to tax issues. On the contrary, cryptocurrencies like BTC and ETH have set record highs and continue to jump into 2021.
What do you think of the recent price movements in the crypto economy? Let us know your thoughts on this topic in the comments section below.
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Picture Credits: Shutterstock, Pixabay, Wiki Commons, Phoon Mei Hui, Coin Metrics, Marketmilk, Tradingview,
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