Bitcoin is struggling to make a breakthrough at the resistance mark but is holding fast onto the $38,000. It has been able to clear the crucial $38,500 and is trading at $38,534. Data feed on Kraken shows there is a bullish trend line forming with support near $37,650.
Ethereum, the second-most popular cryptocurrency, is also on the upside and trading at $2,780. It has recorded 12.24% gains in the last seven days as the market looks optimistic for it to break through the $3,000 mark. Looking at the upgrading works on its blockchain, last December Ethereum overtook BTC with its improved hashrate. But it may be headed for a decline as the network is scheduled to move to Proof-of-Stake (PoS) which will hit the miners. But currently, it has slowed down the final upgrade with Arrow Glacier so that miners can continue.
Meanwhile, the crypto market has stepped off on the right footing into February. Most digital currencies, including altcoins, are in the green and looking strong. Investors are ready to pump in their money. Danny Chong, the co-founder of Tranchess, believes investors, irrespective of them being retail or institutional, may have already entered the crypto market. They have been pulled in by January’s low prices. He explained that the crypto market is significantly smaller in terms of market capitalization than the traditional financial market. As such, even the smallest modest changes and impacts are noticeable. Chong says with support at current levels and added liquidity, a market rebound would be quick and swift. Market sentiments would be on the upswing.
However, analysts say derivatives traders are betting on more downwards movements by bitcoin. On-chain demand models, as per Glassnode experts, suggest a more bullish undertone is in play. They believe the dominance of futures liquidations has started to creep towards the short side.
Overall, the crypto market is bullish but hopeful for further gains as bitcoin continues to stick to the resistance mark. A breach will soon be evident.
