The Rapid Movement of Bitcoin and Ethereum in expectation of a Break OutMay 7, 2019
It might have lasted for many long months, but most are hoping they are witnessing the end of the crypto winter. Naturally, few are certain to believe that this might be a definite end of the same bearish market, but a recent market movement coming with the first full week of May shows strong signs of what is already being dubbed the crypto spring.
This is related to both of the top cryptocurrencies in the world – bitcoin and ethereum. In the previous days, these saw some serious moments in terms of their price. In fact, bitcoin is close to a huge psychological mark and breaking through it, along with holding successfully the supports, could be a strong bullish signal.
Naturally, like with all things crypto in nature, many are more than skeptical. At the same time, traders are clearly playing the short game and they are offloading as soon as profit is attained, opening little chance for an immediate and prolonged breakout. But, thanks to the previous months and the general movements of the market, it definitely does feel like the crypto fortunes might be on a serious road to recovery.
The $6k Mark
Bitcoin price has come really close to the $6,000 mark as this crypto spring continues to push cryptocurrencies across the board. Ethereum, the second biggest cryptocurrency by capitalization and market value, managed to grow in double-digits across recent days. The gains have not been stable in their progression, but the fallback positions have.
Bitcoin began its rise earlier, back in the start of April. Then, the cryptocurrency token was valued at about $3,500 but it managed to climb to over $5,000. At the same time, BTC has also been extending its dominance over the markets in a similar manner. Now, over a 24 hour period, it managed to grow by almost 5 percent and reached the levels of $5,970 according to Bitstamp exchange.
In the same period, Ethereum managed to gain over 10 percent. This comes, at least for the ETH token, in the wake of the reports that the US CFTC is considering approving ethereum futures conracts.
Big Resistance Levels
Right now, it is hard to guess where the actual resistance points are coming over the $6,000 mark. Many analysts believe that $6,200 could prove to be one of those. Others, however, are pointing out that it has no significance whatsoever.
This alone is a great showcase of the apparent randomness of the process of gauging the potential of bitcoin price climb, even when clearly a bull market seems to be drawing closer. There is undoubtedly many additional arbitrary resistance lines and none of them make more or less sense than those set at this level.
Still, the eyes are all set on the prices moving up in the coming days and weeks. In this regard, there is a strong consensus that the crypto assets have been performing really well in the previous period.
Still, in spite of the market movements, the key news is the ethereum futures possibility that was first reported by CoinDesk. This portal managed to attitude that statement to a senior figure in the CFTC. It suggests that a chance for a US derivatives market regulator would be ready to oversee an ETH product.
A very similar thing happened back in 2017 when CFTC approved a bitcoin futures product. This was one of the major factors that contributed to the insane price growth that took place in the period after it, culminating with the record-breaking values for bitcoin at almost $20,000.
What is more, the statement of the official has both positive and very clear. The source said that CFTC would be comfortable with regulating this product and that the chances of its appearing are very good. Still, no timeline for its appearance was set by the regulators, even those who were ready to discuss this possibility.
Good ETH News
Besides the futures, ethereum has been getting a lot of good news recently. The trading volume on ethereum decentralized applications or dapps has reached a new high. The April numbers show four consecutive months of growth. These clearly were able to outshine both the tron and EOS tokens, both of which had a lot of traction in previous months as key instruments for online crypto gambling.
Furthermore, Joe Luin, the co-founder of the cryptocurrency and its blockchain network, stated that many developers were working on ethereum as they are trying to improve, as he said, virtually everything. He said that some claimed that ethereum has been moving way too slow as an ecosystem, but that the events like the Constantinople hard fork showed merit in doing things this way. Finally, one more piece of good news came from a completely unexpected corner.
Elon Musk, as one of the most noticeable faces in the domain of global business, was recently asked what was his favorite cryptocurrency. He replied that it was ethereum and he then replied to Vitalik Buterin invitation to visit an ethereum developers conference later in the year. While Musk is often an X factor in so many business or marketing dealings, his presence, in this case, brings much-needed publicity to the network.
In the age where social media, esports superstars and similar elements dominate the marketing of virtually everything, ethereum has a big boon if Musk decides to support it in any meaningful manner.
Big Brother Syndrome
While all of the news is well and good for ethereum, the fact remains that this cryptocurrency has not been able to many any major movement in terms of price that has not shadowed bitcoin. This includes the hard fork that came and went without a glitch but still did not take the price up.
But this, in particular, makes the coming period interesting and exciting – with ethereum standing on its new developments and bitcoin being in good overall shape, there is a good possibility that these two cryptocurrencies will push and support each other. This is a possibility that all traders and holders of both digital currencies would really want to see, but now it really does look closer than ever in the last 18 months.