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Bitcoin: the price rises and returns to $9,500
Bitcoin: the price rises and returns to $9,500
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Bitcoin: the price rises and returns to $9,500

By Federico Izzi - 14 May 2020

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After an initial hesitation that had not generated particular tensions and volatility, the rise already mentioned yesterday finds further confirmation in the last few hours and thus the price of Bitcoin rises again, scoring the best climb of the day among the top 35 in the standings, with a +4% and a price that goes close to $9,500, a level that on Sunday had seen a bearish movement that had knocked down the price in just under an hour, pushing the price close to $8,100. 

The price of Bitcoin thus regains ground, with volumes that in the last 48 hours are just over half of those traded in the days before the halving but which remain decidedly toned with $1.7 billion traded in the last few hours

The volumes are strong and on the rise in a general context, with 125 billion dollars traded in the last day and an increase of 20% compared to the day after the halving.

Moreover, Bitcoin, with the rises of the last few hours, is the only one in the top ten to score a positive balance on a weekly basis from last Thursday’s levels. 

Record for the CME open interest 

Just like last Thursday, the CME open interest yesterday marked a new all-time high since the launch of derivative options. 

In fact, the absolute historical record was updated yesterday with a value of over $499 million, surpassing the previous record of $489 million set on Thursday, May 7th

This shows how the overnight uptrend positions for futures on the CME, the first institutional platform to offer derivatives on Bitcoin, are once again prevailing. 

Contrary to what some sceptics remarked, who predicted that with halving there would be a decrease in Bitcoin’s hashrate, on the contrary, the hashrate still sees a hold of over 121 th/s, close to the recent record of 122 th/s. 

At the moment, therefore, the hashrate continues to give signals of a very solid network, with a small number of mining machines shutting down. Furthermore, also the computational difficulty returns to the absolute historical levels marked last mid-March, the week before the downward trend of the prices, therefore Bitcoin remains decidedly solid, not only for the prices but also for the fundamentals of the computational network.

coin360 20200514
Source: COIN360.com

The price of Bitcoin is dragging the rest of the industry and today the day marks a prevalence of green signs for over 80% of cryptocurrencies. Among the top 25 big names, there is only one red sign, that of the token Leo (LEO) which is just below par.

It should be noted that Tether is one step away from exceeding XRP for capitalization, going towards the third position in the ranking. There is a difference of just under $50 million between the two at the moment. This shows that stablecoins have been an increasingly growing sector since last February.

Among the best rises of the day, the biggest one is that of Crypterium (CRPT) which jumps 25% on a daily basis.

ZIL 20200514

Among the best known is Zilliqa (ZIL), which continues to give signs of strength and today is up 11%, showing a gain of over 200% from the lows of mid-March, thus tripling its value in just 2 months. 

Zilliqa, on a weekly basis, marks a jump of 22%, reviewing the highs of February and the last 9 months at $0.0095.

Crypto dominance

Bitcoin’s dominance consolidates above 67%, to the detriment of that of Ethereum which continues to fall to 8.5%, although Ethereum benefits from Bitcoin’s increases and in these hours gains 3.6% on a daily basis. The dominance of Ripple instead falls more and more, going to update the lows of the last 3 years down to 3.4%.

BTC 20200514
Bitcoin chart by Tradingview

Bitcoin (BTC) price

The rise of the last few hours sees an increase of more than 15% from the lows recorded a few hours before last Monday’s halving. This is a strong signal that comes with volumes decreasing compared to those recorded in the 72 hours preceding the halving of the reward. 

These figures show that prices remain strong in the bullish channel that started last mid-March.

A further lengthening above $9,650 in the next few hours would attract new purchases sustained also by short-term speculation. 

Signs of bearish tension would only come with a downward movement below $8,800. Alarms that would jeopardize the current bullish trend present for two months now, from the March lows, would come only with returns below last Sunday’s lows, $8,100, which at the moment would indicate a collapse from current levels of over 13%. 

ETH 20200514
Ethereum chart by Tradingview

Ethereum (ETH) price 

Ethereum is rising in the last few hours, regaining the psychological share of the $200, shyly returning to the abandoned bearish channel last Sunday, a bearish channel that goes from current levels to $200. 

For ETH it will be necessary to return to the $210 area as soon as possible, which corresponds to the bearish trendline that combines the decreasing highs since last mid-February. A bearish trendline that was last tested with last week’s recent rise and rejected last Sunday’s lows. 

The day is positive for Ethereum at the moment, although the weekly balance remains below par with a 2% loss from last Thursday’s levels. For ETH it is necessary not to fall below $185 in order not to cancel the rise of the last three days.

 

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".

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