Bitcoin continues to rise: above $48,000
Bitcoin continues to rise: above $48,000
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Bitcoin continues to rise: above $48,000

By Federico Izzi - 9 Feb 2021

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After a quiet start to February, yesterday’s news about Tesla and Elon Musk have revived Bitcoin’s momentum, with bitcoin surging past $48,000 in the last few hours.

Yesterday will go down in the history of Bitcoin and cryptocurrencies. It is the best gain ever for Bitcoin, with a rise of over $7,500 in one day

On a percentage basis, the day closed with a 20% performance. To find a better day it is necessary to go back to December 7th, 2017 when the daily session closed with a gain of 22% and a price gain of less than $3,000, less than half of what was achieved yesterday. 

Not only Bitcoin: Ethereum also updated its absolute all-time highs in recent hours with prices reaching $1,825 for the first time. 

Since the beginning of the year, Bitcoin has gained over 70% in just over a month. Ethereum does much better, gaining twice as much, 140%.

Source: COIN360.com  https://coin360.com/
Source: COIN360.com

Extending the analysis to the top 10, the so-called blue chips of cryptocurrencies, the best rises are Cardano (ADA) and Polkadot (DOT), respectively in 4th and 5th position among the most capitalized ones, above XRP which slips the 6th position, both of them scoring a 250% gain since the beginning of 2021.

DOT 20210209

Of the top 100 most capitalized coins since early 2021, only one is red, Hedge Trade (HEDG), which lost 33%.

Total capitalization exceeds $1.3 trillion for the first time with Bitcoin taking 63% of the market share, whereas Ethereum, despite the records, drops, or rather collapses to 14.5%, indicating how the entire altcoin sector is rallying as a group. 

DeFiPulse 20210209

DeFi’s TVL is also flying to new records. The total value locked in decentralized finance is close to $37 billion for the first time, with Maker strengthening its lead with an TVL above $6.3 billion, also a new record. 

Aave and Compound follow, and as of yesterday Curve Finance rose to 4th place among decentralized exchanges, bypassing for the first time the other DEX Uniswap, which remains the most used decentralized exchange by traders in terms of number of daily transactions. 

BTC 20210209
Bitcoin chart by Tradingview

Bitcoin (BTC) climbs in search of $50,000

Bitcoin reaches $48,200 for the first time. Yesterday’s rise also knocks down the first Fibonacci area target. 

From the technical analysis of prices, which are increasingly pushing into uncharted territory, the next technical and psychological target is $50,000, a level unthinkable until a few months ago, where Bitcoin prices are now reckoning. 

Trader sentiment is also at an all-time high, rising to new all-time highs with the fear and greed index at 95 points

In such a phase of extreme euphoria, it is not wise to go against such a strong trend but at the same time, it is useful to be cautious. In such phases, it is better to remain spectators and enjoy the show. 

ETH 20210209
Ethereum chart by Tradingview

Ethereum (ETH) also rises

Ethereum continues to rise, a trend that reinforces the momentum built up over the past few months. 

Although it remains in a strongly bullish trend in the long term, with prices running so fast upwards, volatility is also increasing considerably, as is the possibility of speculative movements in the opposite direction that would not spoil the trend. 

From current levels, in fact, only a fall below 1,450 dollars would trigger the first danger signal. This means that from current levels there should be a fall of 20% or around 400 dollars. 

 

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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