Bitcoin and Ether Market Update February 25, 2021
Total crypto market cap erased $133 billion from its value for the period since Monday and now stands at $1,533 billion. The top ten coins are mostly in red for the last 24 hours. Binance Coin (BNB) and Polkadot (DOT) were the worst performers with 7.3 and 6.9 percent of losses respectively. At the time of writing bitcoin (BTC) is trading at $50,214 on the Bitstamp daily chart, ether (ETH) is hovering around $1,615.
Bitcoin reached its highest point ever – $58,452 during intraday trading on Sunday, February 21 then fell back down to $57,489 later in the evening to conclude the seven-day period. The rapid increase in the price of BTC resulted in another 19 percent being added to its market capitalization for the week.
The coin seemed to be losing its momentum and was already in an overbought zone according to the major trend strength indicators. The market was overheated and Tesla’s CEO Elon Musk also noted that, pointing out that the price of both bitcoin and ether was way too high already. His tweets triggered a massive selloff across the major altcoins.
The BTC/USD pair crash to $47,344 was one of the biggest in its history. The coin lost $10,125 in just a few hours’ time. The majority of the veteran traders were quick enough to “buy the dip”, which facilitated the recovery in the second part of the day session. Still, BTC continued trading 5.7 percent lower by closing at $54,178.
The increased pressure from sellers, however, caused another collapse on Tuesday, February 23, this time to $44,482 as BTC hit its 26-day EMA on the daily chart and almost reached its next supply zone situated in the area between $44,000 and $43,000. Once again bulls pushed the price up a little bit in the aftermath of the plunge, but BTC registered a second-straight day on negative territory. It was already trading 16 percent lower compared to the Sunday peak.
The mid-week session on Wednesday was when the coin initiated an upside reversal. It was trading in the wide range between $51,605 and $47,000 before stopping at $49,801.
Bitcoin is trading slightly higher at noon European time on Thursday, February 25.
The Ethereum Project token ETH peaked at $1,978 on Sunday but was unable to print a new high most probably as a direct result of the already exhausted short-term uptrend. The leading altcoin closed the day and the week in green but was not in a position to consolidate in the area mainly due to the lack of high incoming trading volumes.
On Monday, it followed the example of BTC and the rest of the major altcoin and registered a double-digit loss by nosediving to $1,542. It partially recovered by climbing back up to $1,777 at the daily close, but the overall market sentiment was turning bearish.
The Tuesday session was no different and the ether erased another 11 percent of its value. It is worth noting that the ETH/USD pair was trading at $1,351, or right below the short-term EMAs during intraday.
The third day of the workweek was a good one for buyers. The price of ether was moving up and down between the 26 and 50-day EMAs before closing with a short green candle to $1,630 on the daily chart.
The coin is trading flat as of the time of writing this article.