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Bitcoin and Ether: unexpected performances despite volatility!
10:20 ▪ 4 min read ▪ by Luc Jose A.
Bitcoin and Ether have posted double-digit gains over the past seven trading days. This momentum reflects an interesting period of volatility in the cryptocurrency market, influenced by a variety of economic and technical factors. Let’s take a closer look at these moves and the forces at play behind this contrasting performance.
A week of gains for Bitcoin and Ether
Despite a day of declineBitcoin and Ether have seen significant gains over the past seven days. Currently, the price of Bitcoin (BTC) is flirting with $61,000. However, the crypto asset has seen a gain of around 14% for the week. Ether (ETH), on the other hand, is trading slightly above $3,000, with a gain of around 11% over the past seven days.
Other major cryptos have also shown Remarkable performance. Solana (SOL) is up 22% and XRP is up about 23% over the same period. These positive results highlight the market’s notable resilience despite some recent challenges.
Indeed, Germany’s recent Bitcoin liquidations have caused a notable price drop. These liquidations pushed BTC from $65,000 to $55,800 in early July. Additionally, creditor repayments by the now-defunct crypto exchange Mt. Gox, using Bitcoin and Bitcoin Cash, have potentially increased supply in the market.
Technical indicators and forecasts for the cryptocurrency market
Julien Bittel, head of macroeconomic research at Global Macro Investor, points to a crucial technical indicator: Bitcoin’s Bollinger Bands. Currently, these bands are extremely compressed, which has preceded significant price movements in the past. Bittel notes that “only two other periods in history have seen Bollinger Bands this tight: April 2016 and July 2023.”
During these periods, the Bitcoin price has seen substantial increases in the following months. He predicts that if the trend continues, Bitcoin could reach between $140,000 and $190,000. The approval and launch of spot Bitcoin ETFs earlier this year could also play a significant role in the current market dynamics.
New investors who access Bitcoin directly through these funds could take advantage of the current corrections to increase their exposure. According to a report from Gemini, these investors “may be newcomers to the market who previously did not have direct access to spot Bitcoin.”
Fournier adds that bitcoin could continue to accumulate in the $62,500 to $67,000 range until the Ether ETFs launch. This volatility could provide profit opportunities in the coming weeks, he says.
Despite recent volatilityExperts remain optimistic about the long-term prospects of Bitcoin and Ether, so investors should stay vigilant and informed to take advantage of market developments.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.