The cryptocurrency market has managed to hold last week’s gains with overall upward yet slow traction during the weekend.
On Sunday, Bitcoin (BTC) broke above the simple 50-day moving average just above US $57,000, a key barometer for the buyers and sellers relying on technical charts to calculate their next moves. Despite the recent technical resistance, bitcoin with its current price above US $57,500 is still over 500% higher from 12 months ago. The 20- and 50-day moving averages may limit short-term movement, but the first coin is expected to top US $60,000 this week in the lack of negative news/sentiment.
Ethereum (ETH), the second-largest cryptocurrency by market cap, has seen a consistent upward traction over the past week, eyeing US $3,000 level at the moment – a remarkable 15-fold rise from its $200 level price a year ago. At the moment at US $2,992, ether appears to be in the tight-range consolidation with regular attempts to go above the psychological $3,000 level, likely bulls are waiting for further signals to move. Ether has gained momentum after media reports suggesting the European Investment Bank (EIB) could launch a digital bond sale on the ethereum blockchain network in collaboration with heavyweight banks.
Among the other 8 variable-priced digital currencies in the Big 10, ripple (XRP) is changing virtual hands at US $1.58, Binance Coin (BNB) US $628, Dogecoin (DOGE) at US $0.38, cardano (ADA) at US $1.33, ChainLink (Link) US $40, Stellar (XLM) $0.56, Litecoin (LTC) US $272 and Vechain (VET) US $0.22 this morning (AEST).
Cryptocurrency market has grown oversensitive in recent weeks as governments and regulators have focused in on the sector, resulting in choppy and volatile trading.
With the market filled to the brim with froth, the recent market volatility shows how those who ran with their emotions and moved out of the market have been blindsided by how fast it has recovered.
At the same time, the risk of further decline and downtrend is still possible in the fast-changing crypto world. There has been a lot of talk about how the wealthy will be affected by US President Joe Biden’s doubling the top capital gains tax rate in the country from its current rate of 20% to almost 40%.
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