Bitcoin Breaches $46,000 as Investors Turn Down Gold

The global crypto market marched forward by 6 per cent today to close at $1.86 trillion as investors choose Bitcoin (BTC) over gold in anticipation of an early tapering in economic support measures by the US Federal Reserve. Trade volumes across exchanges continued to lend support to the broader crypto market with a 6 per cent gain.

Traders who were anticipating a pullback by BTC were caught in surprise as it sailed through the 200-day moving average at $45,000. After a successful retest at $42,800 support level, BTC registered a 6 per cent gain to close at $46,080 as of 9 am IST. Its support levels are forming at $45,000 and $43,700.

Ethereum (ETH) recouped all of its Sunday losses with a 6.9 per cent increase in the last 24 hours. It seemed to have gained a foothold above the $3,000 psychological level despite attempts by bears to dismantle it. ETH will face its next resistance at $3,500 if it were to continue the momentum, with its support levels forming at $3,000 and $2,870. However, the recent rally has pushed its RSI (relative strength index) levels into overbought territory. ETH is now trading near $3,140.

Top 20 cryptocurrencies by market cap, excluding BTC, ETH and dollar-pegged stablecoins, registered gains between 3 and 12 per cent in the last 24 hours on the back of BTC’s rebound. Litecoin (LTC), Internet Computer (ICP), Uniswap (UNI) gained the most by over 11 per cent while Cardano (ADA) and Binance Coin (BNB) gained moderately by 2-3 per cent.

BTC secured a daily close above the 200-day moving average indicating an end to the downtrend that started in May. If the bulls can sustain this rally, then $50,000 will be in play in the upcoming weeks. In the short term, BTC faces resistance at $46,500 and may remain range bound.

Top Gainers today:

1. Harmony (ONE): 18.9%
2. Ravencoin (RVN): 18.1%
3. Voyager Token (VGX): 15.4%

Top Losers today:

1. XinFin Network (XDC): -3.7%
2. Helium (HNT): -1.9%
3. Qtum (QTUM): -1.8%

The analysis includes the top 100 coins only as of 9 am IST

Source: CoinMarketCap

Crypto News at a Glance:

1. Gold prices briefly fell below $1,700 per ounce yesterday, its lowest since March, as investors turned upbeat amid speculations of a strong recovery in the US unemployment rate which has led to an anticipation of early pullback of stimulus by the Federal Reserve. Analysts estimate that some of the investments are diverted to cryptocurrencies.
2. Circle, the firm behind USDC stablecoin, has announced its plan to become a full-reserve national commercial bank, operating under the supervision of the US Federal Reserve and the U.S. Treasury.
3. Bitcoin miner Argo has registered a pre-tax profit of $15 million during the first half of 2021 as profit margins expanded to 81 per cent. The surge in profits came as a result of the company’s expansion during China's mining crackdown.
4. Ratio, world’s first cricket-based NFT platform built on the Polygon network, has announced a partnership with T20 competition Caribbean Premier League (CPL) to mint unique digital collectibles of memorable moments. 
5. Indonesian crypto exchange Pintu has raised $35 million in a Series A funding round led by tech focused US-based investor Lightspeed Venture partners and several others.

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