Bitcoin and Ether Market Update January 7, 2020
Total crypto market cap added $102 billion to its value for the period since Monday morning and now stands at $1.09 trillion. The top ten coins are all in green for the last 24 hours with Ripple’s XRP and Stellar’s (XLM) being the biggest gainers with 41.5 and 18.5 percent increase respectively. At the time of writing bitcoin (BTC) is trading at $37,450 on the Bitstamp daily chart, ether (ETH), at $1,194. XRP climbed to $0.336.
Bitcoin closed the trading day on Sunday, January 3 at $33,121 after trading as high as $34,820 during intraday. The coin added 12.8 percent for the weekend, jumping up from the sub-$30k area on Saturday. It ended the week 26 percent higher.
On Monday, the BTC/USD pair experienced a flash crash. The so-called CME gap was filled all the way down to $27,710, but the leading cryptocurrency managed to recover in the evening part of the session, still closing with a short red candle to $31,973.
According to some analysts, the futures funding rate for BTC was way too high already so the long squeeze event, which liquidated billions-worth of positions, was meant to actually restore the funding rate equilibrium. A lower funding rate is in general better for the long-term uptrend stability.
Additionally, bitcoin is in an uptrend corridor since December 16 on the 4-hour chart, which was not impacted by the Monday selloff.
The trading day on Tuesday was extremely volatile. BTC/USD fell down to $30,000 in the morning, then climbed back up and closed in green, touching $34,000.
On Wednesday, January 6, the coin skyrocketed to new highs. This time it reached $36,850, which resulted in an 8.3 percent increase for the day.
As of the time of writing this article, it is hovering around $37,450.
The Ethereum Project token ETH surpassed the weekly resistance at $790 on January 3 and stopped at the next major barrier on that timeframe – $980. The coin added 26 percent to its value during the Sunday session and ended the week 43 percent higher compared to the previous seven-day period.
On Monday, the ETH/USD pair formed a third consecutive green candle on the daily chart and moved further up to $1,043 breaking the psychological mark of $1,000 for the first time since 2018. The coin was jumping up and down the wide range between $1170 and $890 during intraday, which was to be attributed to BTC’s derivative- caused flash crash event.
The price of ether surged during the next two sessions by first hitting $1,100 on Tuesday then $1,211 on Wednesday. It grew by 16 percent for the period.
In the early hours of trading on Thursday, January 7, the biggest altcoin hit the next major weekly resistance at $1,230 and is now trading at $1,194.