Bitcoin (BTC) is so far holding gains after a major breakout on January 6. The breakout brought the price of bitcoin above $4,000 on some exchanges. However, a (schduled) maintenance outage on one of the world’s largest cryptoasset exchanges, Bitfinex, stoked concerns of volatility in the markets.
The price dipped below $4,000 on some exchanges as Bitfinex went offline (it remains offline at time of writing) at about 10:00 UTC, but was defended there, and bitcoin’s value has stabilized for now above $4,000.
(source: CryptoCompare)
Ethereum (ETH) is cooling off but holding strong on top of recent gains, after starting another leg - on January 1 - of the major uptrend uptrend that Ethereum has been on since December 15. The price of ether has held above a support/resistance zone of about $150 - almost double its December 15 price in the low $80 range.
(source: CryptoCompare)
Data from CryptoCompare.com show that trading volume has been very high in the past days, especially on December 6. The total number of trades across the industry hit a 30-day high yesterday, at 52 million individual trades.
(source: CryptoCompare)
CryptoGlobe reported two days ago that the vast majority of retail traders were “net-invested” in bitcoin, meaning they are in “long” positions, according to research data from DailyFX. (To hold “long” means to hold an asset with the expectation of a rise in the asset’s price, whereas to “short” means to sell an asset - and especially, to sell against an asset with leverage in a future contract - with the expectation that the asset’s value will fall.)
(source: TradingView.com)
DailyFX did not necessarily see this as a buy-signal however, with the report’s author saying “the fact [that] traders are net-long suggests Bitcoin prices may continue to fall.”
(source: TradingView.com)
Before Bitfinex went down today, bitcoin shorts were indeed falling precipitously - with longs also taking a small dent, but overall still soundly beating shorts.
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