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Bitcoin at 10,000 dollars: profit-taking gets triggered

In the last hours during the European night and the start of the day for Asian markets, Bitcoin regained the 10,000 dollars threshold, a psychological threshold that had been abandoned exactly between February 23rd and 24th.

It was the beginning of the Coronavirus pandemic, with the first cases in Italy and the subsequent explosion of the crisis that hit the financial markets and which also affected Bitcoin that, from those levels, the 10,000 dollars, exactly 20 days later had seen the price fall by more than 60% going to reach the minimum on March 13th, which on some exchanges had even gone below 4,000 dollars

From March 13th until today, in less than two months, Bitcoin has managed to regain this psychological threshold with a recovery of 120%, doubling the value. 

This comes three days before the halving, in a positive context both for speculation and for the network. The hashrate is close to absolute records with more than 120 billion transactions per second, with unique active addresses at the levels of the end of 2017 and an increase in revenue both for small retail investors and for the confirmation of wallets with more than 10 Bitcoins that remain stationary, with no particular outgoing movements. 

Such an upturn had not taken place in either the halving of 2012 or 2016. In fact, the increases had previously been recorded a few weeks before the halving and not a few days before the halving of premiums. 

coin360 20200508
Source: COIN360.com

This produces a domino effect on the entire sector that sees Bitcoin in the first place achieve an increase which brings the capitalization to 180 billion dollars, making the total market cap soar to a step from 280 billion dollars, levels that the sector had not recorded since the end of February.

This allows Bitcoin to consolidate its dominance, at 68%, a step from the records of the last three years, established last September 2019, when after two years from the 2017 levels, Bitcoin brought its market share record 69%. 

Although Bitcoin drags the whole industry, its dominance undermines all the others, so much so that Ethereum, in spite of the last few days’ resilience, drops to 8.8% market share. Even Ripple goes to touch the minimum dominance of the last three years falling to 3.6%

Precisely because Bitcoin is dominating the rest of the industry, performance on a weekly basis marks an increase of over 30%. Ethereum performs much better and doubles BTC, in fact ETH gains 60% from Friday’s levels. Ripple lags behind, and on a weekly basis, it earns “only” 11%.

On a daily basis, with an increase of 6%, Bitcoin is among the best of the top 25. Only Monero (XMR) is better, rising by more than 10% on 24 hours, while on a weekly basis it gains 40%, and Neo (NEO) that today rises by 7%.

XMR 20200508

Monero, after the sinking of the last few days that saw it establish support in the 57 dollar area with yesterday’s lows, returns to the attack of the April highs just over 65 dollars, going to test the bullish trendline that it had violated 5 days ago, with the declines of May 3rd. 

Monero, with the rise of the last few hours, establishes the best performance among the privacy coins since the March lows, with an increase of 115%. Dash (DASH) gains 100%, while the “worst” is ZCash (ZEC) which stops at 95%.

The volumes are explosive: Bitcoin sets the third-best record since the beginning of the year with trading volumes exceeding 3 billion dollars

The total trading volumes rise over 160 billion dollars, with an increase of 20% on a daily basis, such high levels have not been recorded since last March. 

BTC 20200508
Bitcoin chart by Tradingview

Bitcoin (BTC)

Bitcoin puts the turbo and goes to review the 10,000 dollars after more than two months. However, in these early hours of the European day, profit-taking is prevailing that brings prices back to the 9,700 dollars area. Volatility could increase in the coming hours of the weekend, after hitting period lows. 

At the moment there are no clouds, but such an important rise, since last Monday Bitcoin recorded an increase of more than 15% in 5 days, shows an excessive euphoria that can trigger profit-taking in the short term. 

At the moment, however, there are no particular signs that could give rise to fear of a decline. The support that will contain the danger sustains a setback down to even $9,000. Only a drop below this threshold during the weekend would trigger alarm signals and a possible speculation entry. In the medium to long term, the dynamic bullish support is currently just below the $7,950 threshold.

ETH 20200508
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum unlike Bitcoin remains stable and consolidates the $200 holding, where it laid the foundation of the support during the past weekend. It is necessary for Ethereum to confirm the hold of last weekend’s support. 

A rise above $220 could trigger, as happened for BTC in the last few hours, a rally and bring prices above the levels of early March. Unlike Bitcoin, Ethereum is still swinging in the bearish bar marked on March 8th. For ETH there is still some ground to make up to review the levels of February 23rd-24th, the pre Covid levels.

Ethereum must put the turbo, from those levels it’s about 30% far away: this shows how in these hours there’s a Bitcoin fever.


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. 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".