As global markets search for a footing amid the coronavirus chaos, bitcoin has begun to recover. This leads analysts to suggest we could be witnessing a ‘decoupling’ as the recent correlation between $SPX and $BTC is broken.
Meanwhile, confidence in Ether is growing as Vitalik Buterin lays out a new roadmap, and the STEEM token is surging as the Steemit community claims victory over Justin Sun’s ‘hostile takeover.’
The bitcoin bulls awaken
The downtrend of the last few weeks has now reversed, and bitcoin is up more than 25% over the last seven days. The S&P 500 index, meanwhile, is down 4% on the week, suggesting the two markets which have traded together in recent weeks are finally diverging.
Notably, bitcoin’s resurgence has not been enjoyed by institutions. Trading volumes on the regulated CME exchange, which can be taken as an indicator of institutional interest, rose to a record high of $5.4 million on January 17, but have since been dropping. And, no options contracts have been traded on the newly launched Bakkt exchange since February 27.
Meanwhile, statistics from Glassnode show that more accounts than ever are holding more than 0.1 BTC. Though anecdotal, this could suggest some of the bitcoin being sold by institutions during the market crash has found its way to the accounts of smaller investors.
On the chart, bitcoin is now pushing through resistance at $6,750. A move beyond here is likely to face minor resistance at $7,600 before potentially smashing back up to the $10k level.
But, given the uncertain macro climate, more downside is still a distinct possibility. Key levels to watch include the recent bottom at $3,800, which is likely to be retested if we see a break below $4,000.
On the other hand, if bitcoin continues to make a strong reversal, it could soon be reclaiming its ‘safe haven’ asset status.
Ether holds up as new road map released
Ether price action is following bitcoin as fundamentals are bolstered by figurehead Vitalik Buterin.
On Wednesday, The Ethereum founder inspired confidence by laying out his vision for the development of the blockchain project over the next two years. This set sights on mid-2020 for the roll-out of the first stage of Ethereum 2.0, which will initially coexist with Ethereum 1.0.
On the chart, Ether is now pushing against resistance at the $150 level. If this breaks, the next hurdle is likely to lie at $175.
To the downside, a break of $122 is likely to lead to a retest of the recent bottom at $87.
Steem surges as the community take control
The biggest mover over the last seven days in the top 50 cryptocurrencies is STEEM. This is the native token of the Steem blockchain, which hosts decentralized social media platform Steemit.
Ever since it was purchased by the Tron founder Justin Sun, Steemit has been embroiled in controversy. The acquisition was scorned by the Steemit community, and several developers quit in protest against what they claimed was a ‘hostile takeover.‘
Now, the STEEM token has surged on news that a group of members from the Steem blockchain has the support of Binance and Huobi for a hard fork that would move the community to a new blockchain without Sun.
This represents a significant victory, and the token has spiked on positive sentiment to reach $0.30 after trading at around $0.15 for the majority of last year.
The information in this article is for informational and educational purposes only and should not be considered financial or investment advice. Investing in ICOs, IEO’s, cryptocurrencies, or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.