Bitcoin is on the rise as increased risk appetite pushes up equities around the world.
Although the crypto sentiment indicator is still pointing to Extreme Fear in the crypto markets, fundamental developments are lending a sense of optimism. Ethereum 2.0’s launch is looking closer than ever, and small altcoin Stellar is flying high on news of involvement with Akon’s Kenyan tech city.
Bitcoin recovers from coronavirus
In a display of resilience, bitcoin has now just about fully recovered from the March 13 crash and reclaimed the yearly open by moving above $7,200.
For much of the week, bitcoin traded in a tight range as exchanges registered record stablecoin balances, suggesting traders were biding their time. Then on Thursday at 10:00 am UTC, bitcoin broke out of its consolidation and spiked to a new monthly high of over $7,725, before retreating to $7,500.
Such volatility often occurs the day before CME bitcoin futures expiry on the last Friday of the month, but it usually pushes the price down. This was revealed in a study from Norwegian crypto analytics firm Arcane Research which found that bitcoin dropped 75% of the time before CME futures settlement dates.
Despite the sudden move skywards, market sentiment is still Extreme Fear. The gauge has now been flashing this reading since mid-March, marking the most prolonged period of sustained fear in the crypto market since the bottom at $3,200 in December 2018.
On the chart, bitcoin is now hovering above newly established support at the $7,500 level. If this holds, the price could be expected to move up to further resistance at $8,000 and $8,400.
Ethereum prepares to evolve
Ethereum 2.0 is now only just around the corner. This has been put into focus by the progress of the new Ethereum testnet — Topaz — which launched on April 18 and has since attracted 20,000 active validators.
Growing confidence in the platform is epitomized by the comments of creator Vitalik Buterin, who wryly observed on Twitter this week that the “trolls are already starting to ever so quietly walk back” their doubts.
Indeed, as the date of the transition grows closer, some bullish analysts—like Adam Cochran, a partner at MetaCartel Ventures DAO—are even arguing that ETH 2.0 “could prove to be the largest economic shift in society” yet.
The price of Ether has benefitted from bitcoin’s rally and is now sitting just below $190. A move up from here in continuation of the trend could land the crypto at $214.
Stellar hits the stratosphere
Stellar, the cryptocurrency that was originally based on the Ripple protocol, has outperformed the broader market with almost 30% gains this week.
This stratospheric rise could be a late reaction to news last week about Akoin, the token of grammy-award winning artist and producer Akon that has made its home on the XLM blockchain.
According to the announcement, Akoin will be the sole currency of Kenya’s Mwale Medical and Technology City (MMTC), which is home to over 35,000 people.
If Stellar manages to find support at around $0.06, then the coin is likely to next hit further resistance at $0.075. To the downside, support could be expected at $0.05.
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.