Bitcoin (BTC) continues to trade in a tightening range within a pennant pattern and while the price has moved above the 20-day moving average, it is clear that bulls and bears are fighting in the direction of the digital asset.
Data from Cointelegraph Markets and TradingView show that BTC traded between $ 34,955 and $ 37,850 over the weekend, but traders who buy each dip appear to be doing so less quickly.
JPMolna research analyst Nikolaos Panigiratzoglu recently emphasized the importance of bitcoin above the $ 40,000 level, so that “trend-following” investors may be hurt by the exodus, which could spoil last week’s correction.
According to Yves Reno, head of trading at WireX, bitcoin is in consolidation “above the $ 35,500 level”, but Reno still sees an overall positive trend in the market.
Reno also said that the most recent reform was actually seen as a buying opportunity for large, institutional-size investors, as opposed to an increase in the number of BTC whales and an increase in the “below average” minor supply Was seen as
Reno said investors should expect to see “a sustained period of high volatility with a positive medium trend” in the coming weeks and months based on the action in the derivatives market.
“Open interest is always killing new ATHs, which makes the market riskier because it means there is a higher risk of liquidation during the correction, which means the collateral is sold, which generally increases the correction.”
Ether (ETH) also looks to show “sustained strong momentum” as Reno sees this by the Ath2 launch in February and the upcoming CME Futures launch. Eth2 is expected to promote the DeFi economy in general as the ecosystem will benefit from reduced transaction fees and reduced congestion.
Positive developments on the regulatory front
News incoming president Joe Biden intends to elect Gary Jenner, a professor who previously taught a blockchain and cryptocurrency course at MIT, as chairman of the United States Securities and Exchange Commission, to the crypto sector in sentimentality Short term boost.
Bitcoin also received significant votes from former Canadian Prime Minister Stephen Harper. Harper suggested that there may be a place for bitcoin as part of “a basket of currencies reserved to replace the dollar”.
While the price of bitcoin is trading sideways, crypto pundits are calling for ether to break and follow BTC’s parabolic move. Within the final hour, Ether managed rapid breakouts in its BTC pair and USD pair. At the time of writing, the top-ranked altcoin is 5.43% and trades at $ 1,327.
Despite being pulled back on Monday, Polacadot (DOT) also remains one of the top-performing altups, with a 75% price increase last week and overturning XRP as it sets the vision at the $ 20 mark. Currently, DOT trades at $ 16.80.
The overall cryptocurrency market cap is now at $ 1.03 trillion and the dominance rate of bitcoin is 65.7%.