A day of reaction after yesterday’s bearish slap, the worst bearish day since the beginning of September. Today, much of the lost ground is being made up. At the moment it is a technical rebound for the cryptocurrency.
Bounce for cryptocurrencies
Today there is a prevalence of positive signs, 65% above parity. This is a moment of reaction that will not spoil the bullish trend of the week.
Bitcoin is starting to record the first negative week after seven consecutive series, a record-breaking series that had not been recorded for some time. Ethereum, despite the sharp decline that saw a loss of 20% in a few hours, on a weekly basis finds itself swaying in parity.
The weekly closure of Ripple, on the other hand, is a 70% increase from last Friday’s levels, behind the performance of the twin token Stellar (XLM) with a weekly gain of over 120%.
The day sees alternating red and green signs. Stellar, which recovers after the sinking of the last days with an increase of 15% (better among the big ones). Better than Stellar does Sushi Swap (SUSHI), one of the best known tokens of decentralized finance, which gains about 20% from yesterday’s levels.
It’s a day that also sees a positive reaction for most of the tokens in decentralised protocols, including Yearn Finance (YFI) and Waves, which are close to 10% higher.
Record volumes for Bitcoin and Ethereum
The last 24 hours have seen a generalised drop in volumes, but not for Bitcoin, Ethereum and Ripple, which yesterday recorded decidedly high exchanges.
Bitcoin with a countervalue of 8.8 billion for a few tens of millions does not close the day with the highest historical volumes ever. A difference of 40 million was enough to match the record of 26 June 2019. Bitcoin also records high trade in derivatives, in particular futures on the CME.
Yesterday, since the launch of this type of markets, the CME has recorded volumes in excess of $1 billion. This makes CME yesterday the leader in futures trading, on the day with the largest futures trading ever.
There was a decline in open interest in futures and options derivatives, a sign of the closing of derivative positions which anticipates the monthly maturity of these hours on the CME.
Ethereum traded high with volumes in excess of $5 billion, the day with the highest volume of dollar trades since the beginning of the year.
Ripple trades less than Tuesday, while maintaining high trading volumes.
The top 10 are the cryptos that trade the most, because generally speaking the volume of trade is down by more than 30%.
DeFi, ETH haemorrhage continues
Decentralised finance, with the collapse in prices, also saw part of the total fixed asset value fall to 12.7 billion from the top recorded two days ago, more than 14.3 billion recorded on Wednesday.
ETHs continued to bleed, falling below 6.6 million. The tokenized bitcoins remained stable, above 167,000 pieces.
Bitcoin chart by Tradingview
The sinking of the last few hours yesterday saw prices fall to $16,400, testing the trendline that has accompanied the bullish movement since mid-October.
It is an important technical test that will be as a reference level the next two days of the weekend. Important for the Bitcoin not accuse in the coming days sinks above $ 14,800, first levels of coverage by professionals in options.
Ethereum chart by Tradingview
The sinking recorded in just over 2 days leads to a 20% loss on Ethereum prices. ETH arrives to the test of the 480 dollars where the purchases have intervened that have rejected the prices to 510 dollars, where they are found in these pre.
It will be import for Ethereum to consolidate the estate of this former resistance become medium-term support also during the weekend.
In case of a break downwards it is important not to extend the movement under 400 dollars, a level where the trendline that accompanies the movement since last mid-March and that conjugates the growing minimums currently passes.
On the rise, apart from the unlikely exploit of the weekend, the return of the bullish force is distant and would be activated only with a rise above the $600 area.