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Bitcoin bounces back to $50,000
Bitcoin bounces back to $50,000
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Bitcoin bounces back to $50,000

By Federico Izzi - 24 Feb 2021

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After the darkest day since the beginning of the year, 24 hours later we are starting to take stock to understand the damage left on the field. At the moment there is an overall price rebound for Bitcoin and the entire cryptocurrency sector

coin360 20210224
Source: COIN360.com

In fact, there is no negative sign among the first 100 capitalized currencies. Yesterday’s bearish movement was accompanied by strong volumes, with the highest amount of trading on exchanges, over $1 trillion. 

This is an indication that yesterday was a very eventful day. 

Even the fear and greed index, which measures sentiment among traders, after rising to a high last week, fell below 80 points yesterday, its lowest level since the beginning of the month.

More specifically, for Bitcoin, with over $27.5 billion, it was the second-highest volume day ever in history. It is second only to that of January 11th, with a difference of only $180 million. 

For Ethereum, with over $15.5 billion it is the highest trading record ever

Even on the platforms that offer leveraged derivatives trading, there have been around 6 billion upward position closures over the past three days, which is one of the highest settlement volumes ever on leveraged crypto derivatives.

Crypto market today

Today’s strongest bullish reactions include Polygon (MATIC), PancakeSwap (CAKE) and THORChain (RUNE), which are up more than 40% from yesterday’s levels. 

BNB 20210224

The market cap rose to over $1.5 trillion. Market share and dominance remain unchanged, with Bitcoin at 61.5%, Ethereum at 12.7% and Binance Coin (BNB) consolidating its third position in the ranking with 2.6 % dominance.

DeFiPulse 20210224

DeFi, after recording the day with the highest countervalue of liquidations which caused the TVL to drop to $36 billion, today returns to close to $39 billion dollars. In the last 24 hours, the number of Ethereum tokens locked among the various decentralized finance projects has risen to 7.8 million tokens, which is the highest number since November 17th. 

Maker, with $6.5 billion remains the project with the most locked collateral. Aave with 5.3 billion regained the second position, followed by Compound with 5 billion.

BTC 20210224
Bitcoin chart by Tradingview

Bitcoin (BTC) bounces back up

After sinking to $45,000, cancelling out the 48-hour rise of the previous 10 days, Bitcoin is now back to the $50,000 mark, a signal which is also accompanied by a return of purchases but which will have to be confirmed in the coming days.

To recover the uptrend, it is necessary to regain the $54,000 mark. A break of yesterday’s lows, at $45,000, would open space for the return of bearish speculation, with the next target in the area of $41,500, the highs of early January. 

ETH 20210224
Ethereum chart by Tradingview

Ethereum (ETH)

Ethereum yesterday suffered a collapse that saw the value lose just under 30% from Sunday’s highs on Saturday, and went to test with surgical precision the area $1,350-1,400, which coincide with the resistance area that had rejected throughout the middle of last January every bullish attack, then giving way at the beginning of February, opening the race that over the weekend has brought the prices of Ethereum above $2,000 for the first time. Ethereum is also reacting by regaining the $1,700 mark.

It is necessary for Ethereum to push above $1,850 to recover the short-term uptrend and consolidate the hold of $1,400 in the coming 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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