Bitcoin and Ether Market Update February 3, 2022
Total crypto market cap erased $8 billion to its value for the period since Monday and now stands at $1.68 trillion. The top ten coins are all in red for the last 24 hours with Solana (SOL) and Polkadot (DOT) losing 12.6 and 10.9 percent respectively. At the time of writing bitcoin (BTC) is trading at $36,700. Ether (ETH) is at $2,608.
Bitcoin closed the trading day on Sunday, January 30 at $38,000. It was the first red candle on the daily chart after three consecutive days in green for the biggest cryptocurrency. It added 4.5 percent for the seven-day period, but most importantly it successfully bounced back from the $33,000 low thus avoiding breaking below the June/July 2021 low.
Traders were divided in their opinions about the recent price action with some seeing the bounce as nothing but a bearish consolidation (BTC was drawing a bear flag pattern on the daily timeframe) backed by low volumes while others pointed out the exhaustion of the downtrend and increased on-chain activity with raise in buy orders.
On Monday, the BTC/USDT pair dropped down to $36,600 in the early hours of trading but quickly erased the losses by closing the session in green, at $38,493.
The trading day on Tuesday was when bitcoin touched the 21-day EMA and the diagonal downtrend line, which as expected could not be broken with the absence of high volumes.
The mid-week session on Wednesday came with a rejection around the mentioned level and a drop down to $36,800, which corresponded to a 5 percent decrease in price.
What we are seeing midday on Thursday is a continuation of the correction (or confirmation of the bear flag, it depends on the point of view). BTC is trading at $36,700.
The ether formed its third consecutive candle in green on Sunday, January 30, which resulted in a 19.8 percent increase in its price since it hit a 6-month low on January 24. It added 2.2 percent to its valuation for the seven-day period and managed to bounce back up from the lower boundary of the long-term uptrend channel. Trading volumes were still low, but the strong fundamentals behind the Ethereum project were once again attracting both investors and speculators.
On Monday, the ETH/USDT pair added another 2.4 percent, but not before hitting a daily low of $2,484. The leading altcoin closed the month of January with a 26.6 percent loss.
The Tuesday session was no different and bulls continued to push the price in the upward direction. This time it reached $2,800 – a level that acted as a resistance in the past (back in June 2021) and also as a support (in September 2021). It is also where the 21-day EMA lies.
The third day of the workweek came with rejection in the above-mentioned zone as ETH stopped at $2,675.
As of the time of writing, the ether is trading slightly lower – at $2,602.