Bitcoin hits $25K as bearish voices call BTC price 'double top'
Ethereum sees a rise in value after hitting over $2,000 for the first time since May
By Shashank Bhardwaj
Bitcoin surpassed the $25,000 mark on the night of August 14 for the first time since June 13. Crypto assets have risen in value in the last month as stocks in the United States have risen. Bitcoin has gained 5.85 per cent only in the last week. During that time, Ethereum gained 16 per cent. The excitement surrounding the network's upcoming transition to a proof-of-stake model is fueling Ethereum's growth. The news comes after it was revealed that crypto derivatives trading on centralised exchanges increased by 13 per cent in July to $3.12 trillion.
Data revealed a sharp increase in the price of BTC/USD on Sunday. On Bitstamp, it hit $25,050 in a $350 hourly candle. This led the pair to set a new personal best since June 13. It erased even more of the day's losses in what remains a significant BTC price correction.
Traders, on the other hand, were unwilling to take any chances on a bull run. Bitcoin's rise could be attributed in part to lower inflation. It is the key economic indicator that remained unchanged last month as interest rate hikes by the Federal Reserve appeared to be counteracting rising prices. Investors have become more optimistic since the prospect of a slight reduction in inflation began to emerge. During the same time period, Bitcoin gained about 15 per cent.
An anonymous crypto analyst with Twitter handle iI Capo of Crypto believes that the recent highs are the final piece of the puzzle before a new downtrend begins. He took his official Twitter handle to state,"$25k reached but no bearish signs yet on ltf. We could see another leg up to 25400-25500, but imo the top of this bear market rally is very close. Most altcoins are reaching major resistances…Still not ruling out a last touch of the upper part of that range (25400-25500), but top is very very close. SPX futures also being rejected from major resistance."
Liquidations were very high over the weekend, with BTC's total liquidations totalling $205 million, up from $15 million the previous weekend. However, Bitcoin has failed to maintain its $25k position and has fallen around $900 since Monday. To begin the week, Ethereum also fell below $2,000. It hit the above $2,000 mark over the weekend for the first time since May. This bearish trend in Ethereum is also due to the RSI being overbought, as it has risen above 71. It's the highest level since April 4.
Bitcoin has gained 6 per cent in the last week. If it can hold above $24,000 for an extended period of time, it can aim for $27,000 in the coming trading sessions. According to another crypto analyst with Twitter handle dave the wave,"#BTC Plenty of upward pressure building at a level of resistance.
Weekly MACD about to cross from an over-sold position well below the zero-line.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash