This weekend we have the price of BTC surpassed $31000, while ETH regained the $2000 mark, with both cryptocurrencies leading a new wave of excitement in the market.
Bitcoin and Ethereum posted significant increases. Source: vectorportal.com.
On the Bitcoin price chart we can observe that this April 14 the BTC price briefly surpassed $31000 after showing gradual growth in the previous day's trading, reflecting an increase of almost 4% in 24 hours, thus recording a new high and returning to a price level it had not visited since June last year. Although we can see that after testing this level the price was rejected, it is notable that prices held as support the level around $30200 that previously seemed to act as resistance. At the time of this publication BTC was trading at $30372.
BTC/USD 1 Hour Chart. Source: Tradingview.com.
Given the macroeconomic conditions in the US, where the CPI data showed a greater than expected slowdown in inflation, lowering the year-on-year inflation to 5%; the price of Bitcoin reacted with great volatility, undertaking a rapid rise that as we see slowed down when it reached $31000, perhaps we can see a new period of consolidation around this price level, but it is better to be cautious and wait for further confirmation of this support level or more clarity in the direction of the price.
On the other hand, Ethereum also garnered a lot of attention, after successfully implementing its "Shapella" upgrade (as the Shanghai and Capella upgrades were called), ETH traded back above $2000, a price zone it had not reached since August 2022.
ETH/USD 1 Hour Chart. Source: Tradingview.com
As we can see in the chart above, buyers were already pushing the price before the event, flirting with reaching $2000; and once Shapella's activation took place, the market kept pushing the price upwards to surpass this level, thus reaching its highest price in 8 months. At the time of this publication, ETH was trading at $2093.
This increase was somewhat predictable, the community around Ethereum was waiting for the new update that allows them to start withdrawing their staking locked funds, so the market reacted positively to the event. Although it is now logical to expect some selling pressure, the analysis firm Glassnode reported that the negative effect would not be so dramatic, as it predicts that less than 1% of the ETH in staking will be sold, its prediction is based on the fact that most depositors are still at a loss; according to its report, the average price of all deposited ETH is $2136, which represents unrealized losses yet for current prices. In any case we have to wait and see how the Ethereum market develops in the coming days.
Well friends, it remains for us to keep an eye on the direction the markets of the two major cryptocurrencies take and what effect they have on altcoins. see you next time!