The cryptocurrency has had a tumultuous few days with a tweet by Elon Musk sparking a massive sell-off on Thursday before another tweet less than 24 hours later sent figures accrediting higher again. Market leader Bitcoin proceeds to underperform however and is currently -10% over the last 7 days, while Ethereum is +15% every week. Across the spectrum, there are weekly champions and failures with Dogecoin down 11%, Cardano up 9%, Ripple down 16%, and Telcoin up 22%. A look at the top 100 coins by market cap shows far more losers than winners over the week, but these losses are currently being eroded.
This week’s market sell-off was sparked by Tesla boss Elon Musk halting car payments in Bitcoin, bringing down another Musk favorite Dogecoin at the same time.
Late Thursday, Elon Musk then tweeted that he would work with Doge developers to ‘improve system transaction efficiency’ a bullish signal for the 4th largest coin by market cap.
Elon Musk’s tweets are strictly obeyed by the cryptocurrency and the volatility that they can produce is well known, particularly for Musk’s favorites, Bitcoin and Dogecoin. The week’s fine moves however show that the strength of his tweets can move the market as a whole, a very undesirable situation, even for the avid volatility chaser. Either that or the exchange as a whole is becoming very annoyed about modern cryptocurrency levels. Volatility is good, excessive short-term volatility is not.
The daily BTC chart remains neutral with yesterday’s sell-off candle in control of current price action. Bitcoin’s market dominance is now below 41% and continues to lag Ethereum. To regain an upward bias, BTC needs to open above yesterday’s high print at $52,900 and break above both the 20- and 50-day simple moving averages at $55,000 and $$56,100 respectively. The market is oversold, using the CCI indicator, suggesting that Thursday’s low at $46,070 is unlikely to be troubled.
Ethereum is back nearby the $4,000 level and looking to drag back all of Thursday’s losses. Ethereum continues to outperform the market as a whole and now has a 20% market dominance. While Bitcoin is currently twice the size of Ethereum, this differential remains to engage with the Ethereum/Bitcoin spread now at 785 from a low of 228 at the end of December. Much owns made of the Ethereum reaching Bitcoin to take the top spot – the flippening – and as matters stand, this is watching ever more apparent.
ETHEREUM (ETH/USD) DAILY PRICE CHART
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