What can happen to the price?



What can happen to the price?

Home » Economy » What can happen to the price? February 13, 2022

Analyzing the aggregate performance of the cryptocurrency market over the last 7 days, investors might get the impression that the total market capitalization grew by just 4% to $2.03 trillion, but this data is greatly affected by the 5 major coins, including two stablecoins.

Excluding Bitcoin (BTC), Ether (ETH), Binance Coin (BNB), and stablecoins reflects a 9.3% increase in market cap to $418 billion, up from $382, 000 million.

According to Cointelegraph, the Tether (USDT) premium on OKEx measures the difference between China-based peer-to-peer (P2P) trades and the official US dollar currency. The excessive retail demand for cryptocurrencies tends to push indicator above fair value, or 100%. On the other hand, bear markets are likely to flood Tether’s market supply, causing a discount of 4% or more.

The metric currently reads 99.5%, which is neutral, but the gap has been closing over the last 6 weeks. This indicates that retail demand is recovering and is a positive reading considering that the total cryptocurrency capitalization is still 35% below the all-time high of $3 trillion.

On the other hand, there is the futures market where the funding rate remains negative. These data indicate a balanced demand for leverage by longs (buyers) and shorts (sellers). If there had been a relevant risk appetite on the part of either of the two sides, the rate would be above 0.05%, equivalent to 1% weekly.

Tether premium and funding rate are neutral to bearish despite 4% weekly gainbut keep in mind that cryptocurrencies have recently faced a 50% drop, which means that these indicators show what is currently happening but the picture can improve.

Is hope left in March?

Recently, popular cryptocurrency market analyst Lark Davis pointed to the possibility of hitting a new all-time high this March 2022. Davis mentioned that “the last two times we crossed this line, BTC rallied 54% and 47%. If history rhymes, then we could see BTC rally into the 60K range in the coming weeks.” Lastly, he noted, “The last two breakouts of the 50-day moving average lasted 40 and 46 days until we saw spikes form for bitcoin price. So new high for BTC at the end of March?”




This news is republished from another source. You can check the original article here

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