Crypto Analysis

Bitcoin Rallies Towards $34,000; Market Gains for Third Consecutive Day

Ethereum remains above $2,000 for second consecutive day, investors hope major altcoins will find their way upwards

Bitcoin Rallies Towards $34,000; Market Gains for Third Consecutive Day
Bitcoin Rallies Towards $34,000; Market Gains for Third Consecutive Day

The second half of the week continued to rally and recover previous losses as the global crypto market reached $1.38 trillion with a gain of 2.8 per cent as of 10 am IST today. This comes after an earlier weekly low of $1.16 trillion. Trade volume jumped by 11 per cent over the day to lend support to this rally.

After a successful retest of the $31,900 support on Friday, Bitcoin (BTC) marched forward as the bulls stepped in to push BTC past the $33,500 short-term resistance level. BTC ended the day near $33,700 gaining 3.3 per cent in the last 24 hours with the trade volume registering a significant 15 per cent rise.

The extended bullish sentiment post ‘The B-Word’ event headed by Elon Musk, Jack Dorsey, and Cathie Wood helped BTC to stay resilient above the $32,000 levels before breaking the first resistance level of $32,600. BTC is currently aiming to break the $34,000 level which brings $36,000 in play thereafter. The rally has also been aided by the expiry of $330 million worth BTC options on Friday.

Ethereum (ETH) remained above the $2,000 mark for the second consecutive day. ETH's rally gained momentum post-midnight to close the day at $2,130, with a gain of 2.8 per cent. As ETH nears its EIP-1559 update in a fortnight, a wave of renewed optimism is prevalent among the buyers. ETH tested resistance at $2,080 while steering clear of the support level at $1,960.

Post the recent sell-off, investors hope that major altcoins find their way upwards, providing momentum to the overall market still dominated by BTC. Uniswap (UNI) was the biggest gainer today with a 5 per cent increase. Top altcoins like Cardano (ADA), Chainlink (LINK), Polygon (MATIC) gained by 1 to 3 per cent, while Stellar (XLM) and Polkadot (DOT) took minor losses.

The buzz of the week belongs to Axie Infinity (AXS), a play-to-earn gaming token, which has seen a 120 per cent gain in the last one week and has skyrocketed into the top 40 cryptocurrency lists. AXS token gained by a substantial 45 per cent today.

Top Gainers today:

Axie Infinity (AXS): 45.4%

Flow (FLOW): 15.2%

Decentraland (MANA): 14.2%

Top Losers today:

THORChain (RUNE): -4.2%

KuCoin Token (KCS): -2.8%

Ethereum Classic (ETC): -1.9%

The analysis includes the top 100 coins only as of 10 am IST

Source: CoinMarketCap

Crypto News at a Glance:

Global cryptocurrency exchange Binance continued to face regulatory hurdles in the UK as NatWest, a major commercial bank, blocked debit and credit card payments for crypto transactions.

Central Bank of Nigeria’s IT director has revealed that the bank would begin testing its Central Bank Digital Currency (CBDC) from October this year.

Twitter CEO Jack Dorsey has said that Bitcoin acting as a native internet currency will be a significant part of Twitter’s future during its second-quarter earnings call.

Tech giant Amazon is looking to hire a digital currency and blockchain product lead to develop the company’s strategy in digital currency and blockchain as well as build a product roadmap.

DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.

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