Bitcoin moved little on Sunday after another weekend with light volume, while tokens associated with gaming saw a price bump.Read MoreFeedzy
Good morning. Here’s what’s happening:
Market moves: Bitcoin moved little on light weekend volume, while prices of gaming tokens spiked.
Technician’s take: Bitcoin attempts to break downtrend; faces resistance toward $45K.
Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis.
Bitcoin (BTC): $42,420 +2.04%
Ether (ETH): $3,036 +0.64%
S&P 500: 4,500 +0.5%
DJIA: 35,089 -.06%
Nasdaq: 14,089 +1.5%
Gold: $1,807 +0.1%
Bitcoin (BTC) moved little on Sunday after another weekend with light volume, while tokens associated with gaming saw a price bump.
At the press time, the oldest cryptocurrency is changing hands at $42,420, up 2.04% in the past 24 hours, according to CoinDesk data. Ether, the second-biggest cryptocurrency by market capitalization, is up 0.64% to $3,036 in the same time period.
According to data compiled by CoinDesk, bitcoin’s trading volume across major centralized exchanges on the weekend was down significantly from Friday, but in line with most weekdays in the past week. Spot trading volume was reduced over the past week, as major crypto markets in Asia were off for the Lunar New Year holidays.
In the broader cryptocurrency market, gaming tokens rallied over the weekend, while the majority of the market remained quiet. At the time of writing, data from Messari shows the price of gala (GALA), axie infinity (AXS) and decentraland (MANA) were up by double-digit percentages in the past 24 hours.
Bitcoin Attempts to Break Downtrend; Faces Resistance Toward $45K
Bitcoin (BTC) buyers were active over the past 24 hours as the cryptocurrency topped $40,000 for the first time in two weeks. Upside momentum is improving after technical indicators reached the most oversold levels since March 2020.
Buyers will need to make a decisive move above $40,000 in order to reverse the price downtrend since the November peak around $69,000. Over the past few months, brief rallies have been capped below resistance levels, which means sellers have been in control.
Over the short term, however, bitcoin could see additional upside, especially because the relative strength index (RSI) is not overbought on the daily chart. The next level of resistance is around $45,000, which could stall the current rally.
Bitcoin’s price will need to remain above $37,000 over the weekend in order to signal the start of a recovery phase. Still, significant price gains are unlikely if negative momentum signals are confirmed on the monthly chart.
Technical confirmation requires at least two consecutive daily or weekly price closes above or below a major support/resistance level. When gains or losses are carried over into the following trading session it may reflect conviction among buyers and sellers, leading to more reliable price targets.
8 a.m. HKT/SGT (12 a.m. UTC): Australia TD Securities estimated inflation (Dec. YoY)
9:45 a.m. HKT/SGT (1:45 a.m. UTC): China (Caixin) purchasing managers index (Jan.)
1 p.m. HKT/SGT (5 a.m. UTC): Japan leading economic index (Dec. prel.)
3 p.m. HKT/SGT (7 a.m. UTC): U.K. Halifax home prices (Jan./3 mos./YoY)
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Other voices: Why are there now so many bitcoin trading firms?(The Times of London)
Said and heard
“Our high level philosophy is that, in a democratic society, the people and their elected officials should decide what behavior is allowed and not allowed by setting laws. We think it sets a dangerous precedent when tech companies, such as Coinbase, or their executives start making judgment calls on difficult societal issues, acting as judge and jury. This approach sounds simple in theory, but in practice it is anything but.” (Coinbase CEO Brian Armstrong) … “That is, in betting on a digital monetary future, the financial authorities of the world’s second-most populous nation are joining those of other nations to hasten the arrival of a multi-currency international monetary system – whether they want that outcome or not. In that world, cryptocurrencies will inevitably occupy a key place.” (CoinDesk Chief Content Officer Michael Casey) … “It’s a massive theft by any sane standard – if it had been an old-fashioned bank robbery, it would have been the second largest of all time. But in crypto, it’s only the fourth-largest hack in a single brief decade. Some argue these recurring hacks are part of a learning process on the way to better security, though at this point it’s starting to feel more like an inevitable risk, just the cost of doing crypto business.” (CoinDesk columnist David Z. Morris) … “But overall the job market is strong, particularly in the face of omicron. It’s hard to find a weak spot in this report.” (Charles Schwab Chief Fixed Income Strategist Kathy Jones to CNBC).
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