The reason behind the bitcoin increase in value
The reason behind the bitcoin increase in value
Trading

The reason behind the bitcoin increase in value

By Federico Izzi - 8 Jan 2020

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Bitcoin is recording a further increase in value and updates the highs of the last two months reaching just under $8,500. An event that for the second consecutive time over the last few days sees the bullish movement correlated with the geopolitical tensions that have erupted since January 3rd and that see a strong jump on the part of Bitcoin which, as a result, is driving the entire sector.

Source: COIN360.com

Today Bitcoin achieves an increase of 5% for the second consecutive day. Only Chainlink (LINK) is doing better on a daily basis, rising by 7%. Return of strength also for Tezos (XTZ), which gains 6%, although Tezos’ movement still does not give a clear signal of reversal following the declines that have been characterizing it over the last 10 days. 

By contrast, Monero (XMR) loses 1%, although the strong rise of the last few days puts it in the tenth position. Precisely Monero, alongside Dash and Chainlink, is the best performance on a weekly basis, close to a 30% increase.

What is characterizing the last hours is the return of volumes, which after several weeks return to 100 million dollars in 24 hours. 

This strength driven by Bitcoin sees its dominance rising to 69.5%, a step from the recent records reached last September at 70% for the first time in two years. This is to the detriment of the rest of the industry, starting with Ethereum, which continues to fall, reaching 7.1%, the lowest level since March 2017. Despite that, Ether is attempting to give reversal signals in the medium to long term. Ripple’s dominance remains stable at 4.3%.

Thanks to these increases, the total capitalization is back to $214 billion, a level not seen since last November.

Bitcoin chart by Tradingview

Bitcoin (BTC) Value

Bitcoin increases its value and, with the rise of these hours, tries to break the downward trendline of the medium-term that connects the decreasing highs since last mid-August. A consolidation above area 8,200-8,300 aims to reach the next level of medium-long term dynamic resistance that passes in the 9,300-9,500 dollars area.

Ethereum chart by Tradingview

Ethereum (ETH) Value

After violating the long-term bearish trendline by breaking $135, Ethereum requires a consolidation above $145, a level that rejected tonight’s bullish uptrend, one step away from $150. For ETH, it is necessary not to go below $130-135 to give confirmation of the evident break that took place last Sunday.

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. Since May 2017 he is officially a Bigbit technical analyst. He was interviewed as a #cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on #Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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