Bitcoin turns 11 years old and rises in price and volumes. With the strong movement started during the night, a handful of hours following the geopolitical tensions between the US and Iran, Bitcoin, after having reached the lows of the last three weeks during the night in the $6,900 area, changes the trend and goes up to $7,400, recovering about $500 in a matter of hours. This is the best third rise in the last 20 days.
This strong upward movement also increases volatility. In the last few days, this parameter was at its lowest level over the last seven months. In a context of low volatility, a small directional movement, upwards or downwards, is enough to trigger a strong movement. The tension between the US and Iran may have been the right trigger for the volatility to explode from a monthly daily average of 2.5% to the current 5% fluctuation.
Like Bitcoin, even the ultimate safe-haven asset, gold, is affected by the geopolitical crisis, and in the last few hours has risen above $1,550 an ounce, the highest level in the last seven years. For BTC this is a delicate phase where it is necessary to wait for the confirmations of the following days, related to the technical aspect, to the breaking of levels and to the market sentiment, all factors that can affect the price and volatility.
Today is also the celebration of the genesis block created on January 3rd, 2009. Few people know that the first block is surrounded by a mysterious halo, in fact, the first block contains the first address that showed an error sign, hence the first 50 BTC transaction has been rejected and it is not possible to access it. The story is shrouded in mystery because there are several narratives that say that it was an error wanted by Satoshi Nakamoto.
The day sees Bitcoin’s upturn drag the rest of the industry. Over 75% of the first 100 cryptocurrencies are in positive territory. Bitcoin gains 2.5%, Bitcoin Cash (BCH) and Monero (XMR) do better, both up 6%. Among the best of the day, there is also is Kyber Network (KNC), up 10% from yesterday’s levels.
Conversely, Tezos (XTZ) continues to suffer, losing 3%, trying to limit the trend that in the last few hours continues to drag downwards with prices losing 30% from the highs marked by the strong rally that started from the lows at the end of October and ended with a peak on December 13th. At the moment the bullish structure remains valid.
The total capitalisation gains 5 billion since yesterday and is back to 195 billion. The dominance of Bitcoin remains close to 69%, the highest levels in the last two years. Unchanged also the dominance of Ethereum at 7.5 and that of Ripple at 4.3%.
Bitcoin is back close to $7,500 again, more psychological rather than technical area, as this level has been tested often in the last 20 days without giving any further bullish indications. This time the breakup occurs with the top of the volumes being purchased, a first positive sign that will have to be confirmed over the weekend.
The weekend will see these geopolitical tensions affect the prices of Bitcoin, as it is now considered a safe haven asset that acquires value especially with the current turbulence and that could be justified in these hours due to the tensions between the United States and Iran, with the risk of repercussions from the Iranian representatives and with the possibility of tightening the US sanctions against Iran.
For BTC, it is necessary to break the threshold of 7,500 dollars with the confirmation of the support of the volumes, currently increasing, reaching more than 30% in the last 24 hours. Finally, it will be important not to return below the $6,900 threshold.
Ethereum tries again to attack the $135, a crucial level in the medium term. ETH is approaching the level of dynamic resistance that identifies the bearish trend of the last semester with the trendline passing on the highs of recent months, close to the $140 area. Therefore, it will be important for ETH to reach this area in the coming days.