Bitcoin Price: Cryptocurrency Week at a Glance: Tokens are being traded on a sector-specific basis amid regulatory concerns
Bitcoin and its ardent followers had a relatively quiet week. Although there were some quick swings on both the lower and higher sides, BTC ended up with relatively less volatility. During the week, Bitcoin hit a high of $ 35,894 and a weekly low just above the $ 32,000 level. BTC is down a meager 2.36 percent for the week.
On the technical front, a large number of short positions in BTC had opened up. There wasn’t much food for the bears, however, as the Bitcoin bulls managed to keep the market above the crucial $ 32,000 price point. The second largest cryptocurrency and largest altcoin by market cap, Ether, took a bigger blow. It’s down 4.52 percent for the week.
The daily timeframe chart for Bitcoin showed that trading volume has decreased when plotted with the 50-day moving average of the volume candles. This slump is an important indicator that indicates Bitcoin’s long-term accumulation. This leads to a shortage of BTC on the crypto exchanges. This supply shortage can gradually lead to a huge bull run as accumulation continues its course.
While this was a relatively quiet week on the macro front, two events managed to cause a stir in the crypto universe.
- Barclays Bank has prevented its customers from depositing fiat currencies on cryptocurrency exchanges.
- Binance has temporarily suspended payments through its SEPA network in the EU.
While these events didn’t have a major impact on cryptocurrency price movements, they have caught the attention of several investors and traders. Cryptocurrency investors around the world are wary of such regulatory hiccups from banks or crypto exchanges.
On the other hand, several investors are optimistic that the attitude of governments around the world towards cryptocurrencies is reversing. El Salvador recently made bitcoin legal tender, announcing citizenship to people who invested three bitcoins in the country. People are hoping for a change after this El Salvador decision.
Most of the major cryptocurrencies have been closely tied to the range for the past three weeks. Aside from some volatile swings, there have been no major directional moves in cryptos since the decline in May. JP Morgan analysts have made a prediction that the next bull run for cryptocurrencies will take place when Bitcoin’s dominance exceeds 50 percent of the total market capitalization of all cryptos. At the time of this writing, Bitcoin was dominated by 45.36 percent.
This week should be interesting. Both Bitcoin and Ethereum are near their crucial support levels. If these levels are broken, several short positions will be opened, pulling prices even lower. If Bitcoin and Ethereum can hold support levels, there is a good chance that we will see Bitcoin jump towards the $ 36,000 level. Since most cryptos are based on the price movement of Bitcoin, the rally of Bitcoin is likely to bring about a larger rally in most other cryptos.
Among the top 10 cryptocurrencies, the decentralized token Uniswap or UNI was the best performer of the week. It’s up nearly 8.25 percent this week. The worst performer was the Dogecoin meme coin. It’s down nearly 13 percent in the week. Maybe Dogecoins supporters are waiting for another tweet from Elon Musk to raise that meme coin again.
Top 5 crypto winners during the week (as of 07/11/2021, 11.00 a.m. Source: CoinMarketCap)
- Axie Infinity (AXS): 79.6 percent
- KuCoin Token (KCS): 77.85 percent
- Flow (FLOW): 67.28 percent
- Stack (STX): 65.04 percent
- Synthetix (SNX): 50.49 percent
Top 5 crypto losers of the week (as of 07/11/2021, 11.00 a.m. Source: CoinMarketCap)
- Telcoin (TEL): 37.14 percent
- Internet computer (ICP): 20.59 percent
- Total: 15.86 percent
- Ethereum (ETC): 14.35 percent
- Dogecoin (DOGE): 13.29 percent
(Edul Patel is CEO & Co-Founder of Mudrex. Views are his own)