Bitcoin climbed over the weekend to the $19,200 territory. Looking at ether’s price as a percentage of spot BTC, it may be undervalued.
- Bitcoin (BTC) trading around $19,196 as of 21:00 UTC (4 p.m. ET). Gaining 0.35% over the previous 24 hours.
- Bitcoin’s 24-hour range: $18,990-$19,323 (CoinDesk 20)
- BTC near its 10-hour moving average but above the 50-hour on the hourly chart, a flat-to-bullish signal for market technicians.
The price of bitcoin reversed course over the weekend from a downward slide, with an upward trend that began on Saturday.
“This weekend, bitcoin demonstrated a V-shaped reversal. After the appearance of such a figure, the growth usually continues,” said Constantin Kogan, a partner at investment firm Wave Financial.
Over the past 24 hours, the price hit a high of $19,323, according to CoinDesk 20 data, before settling around $19,196 as of press time.
Read More: Bitcoin Still on Track to Breach $20K in Coming Weeks: Analysts
“Quite a strong move over the weekend,” noted Chris Thomas, head of digital assets for Swissquote Bank. “I wouldn’t expect a continuation of 3%-4% a day. We’ll likely test the highs again in the next few days and will be met with a lot more sell orders [from] short- to medium-term whales and institutional traders.”
After a higher-than-expected amount of volume over the weekend, including over $865 million in spot exchange volume Sunday for the eight exchanges tracked by the CoinDesk 20, Monday’s tally is looking lower, at $569 million as of press time.
“We still see the market challenging the all-time high but there is not a lot of conviction behind it. This can be seen in the lower volumes,” said Joel Edgerton, chief operating officer of cryptocurrency exchange Bitflyer USA. “December normally has lower volumes due to holidays and vacation among Western institutional clients.”
Read More: MassMutual’s Bitcoin Buy May Presage $600B Institutional Flood: JPMorgan
Fewer liquidations in the derivatives market is also helping bitcoin stay steadier. Stalwart futures platform BitMEX, for example, has seen liquidations, the platform’s equivalent of a margin call, dry up in the midst of its regulatory issues. The exchange’s influence in 2020 was previously obvious given the massive amount of sell liquidations that occurred in March when all markets crashed on macroeconomic issues related to the coronavirus.
Since then, however, the BitMEX effect has waned. Bitcoin’s volatility has also flattened out of late, with the 30-day volatility as calculated by CoinDesk Research at 57%, close to where it started 2020 when it was at 53% Jan. 1.
Read more:Market Wrap: Bitcoin Pushes Past $19.2K; Ether at 3% of BTC Price – CoinDesk