Crypto market update: BTC and ETH facing breakout tests

By Raffaele Redi

Bitcoin faces another $50,000 level test, while ether is approaching a $4,000-level test

3-D illustration of cryptocurrency chart and numbers                                 
Cryptocurrencies fluctuating on a stock exchange chart – Photo: Shutterstock
                                

Bitcoin is in the middle of another $50,000-level test, as its price slightly retraced on Friday, after having hit a more than three-month high.

The lead crypto fluctuated around the $50k breakout level, reporting a Relative Strength Index (RSI) value of 68.42.

“Traditional usage of the RSI – a momentum-based visualisation for the bitcoin market – states that values of 70 or above indicate that a bitcoin is becoming overbought and may soon fall,” explains BuyBitcoin Worldwide.

However, according to some analysts: “Bitcoin is approaching another region of notable price stability. Short-term technicals are weak while on-chain, investors are in accumulation. All the makings of a volatility squeeze. Breaking 50 likely a fast track to 60,” tweeted analyst Willy Woo.

According to Currency.com, bitcoin’s price was almost stable during the past 24 hours.

At around 11:30 BST (UTC -1), it was standing at $50,070. The largest cryptocurrency for market capitalisation was trading up 0.5% – and was also up by 5.9% in the past seven days. BTC’s market cap was $941.3bn, while its trading volume was around 4.1% higher at $41.3bn.

Meanwhile, the total crypto market capitalisation had risen by around $40bn – from $2.235trn to $2.275trn – in the past 24 hours.

Ethereum close to the $4,000 resistance

The price of ether (ETH) rose to rose to $3,940.53 as of 11.30 BST today, and may be set to approach the $4,000 resistance again.

According to analysts at JPMorgan, bullish momentum for ETH is supported by the altcoin “mania” and the rise of non-fungible-tokens (NFTs), since these operate by using the ETH blockchain.

Since the London Hard Fork, the network has burned $710m in ETH, with a net reduction of 46%.

Ether was trading up by 4.8% with a market capitalisation of $464.0bn. ETH trading volume decreased by 7.8% in the past 24 hours, standing at $26.2bn at 11.30 BST. 

Cardano fails its first $3 level test

After having reached the $3 level for the first time in its history, profit-taking on Cardano (ADA) may bring about the upside breakout to fail, as the price fell back below the $3 resistance, while the trading volume witnessed a drastic decrease.

Cardano (ADA) was trading down by 3.2% at $2.95, with a market cap of $95.4bn and a trading volume of $5.7bn, down 18% in the past 24 hours.

Top gainers and losers

Elsewhere, the likes of Solana (SOL), IOTA (MIOTA) and Revain (REV) all witnessed around 20% increases in their prices, with the Solana price at around the $140 level in the past 24 hours.

On the opposite side of the coin were Celo (CELO) and Quant (QNT), down by around 5% and 3% respectively, with CELO experiencing a 43% increase in the past seven days.

All prices are correct as of 11:30 BST (UTC -1).

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