The cryptocurrency market is experiencing a period of calm, with the two major cryptocurrencies recovering to their levels of a month ago. But how high can they climb? BFM Crypto takes stock.
For those who follow the course of cryptocurrencies in real time, this information will not have escaped them. In recent days, the queen of cryptocurrencies, bitcoin, and ether, have regained their strength.
As of 5:30 p.m. today, one bitcoin is worth $22,200 according to data from Coinmarketcap. It recovered to its levels of a month ago, when it had been weakened by the crypto-crash in mid-June following the Celsius episode. For its part, ether is worth 1,480 dollars, also experiencing a very good progression for a month.
Plus 28% in a week for ether
The prices of bitcoin and ether respectively increased by more than 4% and 7% in the space of a day, but above all more than 8% and… 28% in the space of a week for ether . How can we explain such a progression? It can be associated with the finally precise announcement of a date for the event The Merge of Ethereum which should take place on September 19th. If the event were to take place on that day (having been so far often postponed), it would be a real revolution in the cryptocurrency sector: see our article about The Merge.
Beyond ether’s rise, the cryptocurrency market seems to have passed the last two crises, which have thrown many companies into turmoil, from the Terra blockchain to the Singaporean investment fund Three Arrow Capital to the Celsius lending platform.
“The rise in cryptocurrency prices is linked to a general lull in traditional markets and risky asset classes,” explains BFM Crypto Xavier Fenaux, partner at Interactiv Trading.
In addition, for many months the cryptocurrency market has been correlated with traditional markets, mainly at the incide of technology stocks (the Nasdaq).
“We have seen that the traditional markets did not react too badly to the announcement of inflation in the United States last week. (9.1% in June over one year, editor’s note). was rather a good surprise, quite unexpected. The market is already projecting itself on 2023 and therefore the “worst” is already integrated into the prices”, adds the latter.
What scenarios for bitcoin and ether?
If cryptocurrencies are facing a good progression, it should not be forgotten that they have lost more than 70% of their value compared to their all-time high level last November. Indeed, on November 10, a bitcoin was worth 69,000 dollars, against just over 22,000 dollars today.
So, if the cryptocurrency market experiences a short-term rebound, one wonders if it can last, and how far cryptocurrencies can go back. To understand the “bear” (bearish market) and “bull”market (bullish market), see our article here.
As for bitcoin, “it is not yet clear if the 2022 low point is behind us, we are going from a bear market to a short-term bounce. If bitcoin settles for several days above $22,000, there is going to be a psychological shift in the market from anxiety to positive in the short term. The next level should be the low point of last summer, around $28,000-30,000,” Xavier said. Windows.
However, bitcoin’s strength has declined since the last crypto crash in June. Its dominance, that is to say its point on the global cryptocurrency market (estimated at more than 1,000 billion in capitalization) has thus gone from 48% to 42% in the space of a month.
“This means that investors are now much more interested in anything that is not bitcoin, and therefore we can observe a nice progression of certain altcoins. (a term referring to cryptocurrencies other than bitcoin , Ed)”, underlines Xavier Fenaux.
These other rising cryptos
This progression can be observed on the one hand on the ether side. The cryptocurrency rose much faster than bitcoin, breaking above its resistance built for a month towards 1300 dollars.
“As long as we stay above $1,300, we are seeing a short-term bullish reversal. There may be a medium-term technical resistance level around $1,800-$2,000 that will likely trigger breakouts, if we go that far. “, continues the expert.
But other cryptocurrencies made good progress in the space of a month, starting to please traders. This is the case, for example, of the Matic cryptocurrency (from the Polygon blockchain) which went from 30 cents on June 18 to almost 1 dollar today or even qnt (Quant), which was at 45 dollars on June 18 June, over $100 today.