TMCnet Feature
January 26, 2021

Bitcoin Surges to All-Time High Boosting Weekly Returns



As the first week of 2021 began, the traders and investors of Bitcoin were relatively distressed, on January 4. The leading cryptocurrency began the trading session of Monday, floating at a high of almost $33,083, but was seen to rapidly slip down by a factor greater than 17%, as reported by Bloomberg. Just after some hours of weekly opening, investors liquidated more than $2 billion around the world, causing the price of bitcoin to fall down to $27,500.



One party that has benefited from the falling prices are the sidelined investors, who may now purchase the crypto again and reenter the market. Bitcoin was also able to bounce back and recover after a large numbers of buy orders took place during the downfall of prices. Towards the end of the first week of 2021, i.e. January 5, the world’s leading cryptocurrency surpassed the weekly open by trading at a value of $34,490.

The improvement was inferred as an optimistic sign by a lot of investors who hurried to exchanges in order to add further tokens to their possessions. Bitcoin soared by more than 22% after a noteworthy peak was witnessed in buying pressure during January 5. This peak continued to extend till the end the week. According to the Coindesk Bitcoin Index, till Friday, January 8, the pioneer cryptocurrency had touched an all-time high of almost $42,000.

A few of the crypto traders were seen to be making gains as the weekly trading session was approaching its end. The surging downwards pressure pushed the bitcoin down by more than 3.50%. Therefore, the Friday’s trading session for bitcoin was closed at $40,553.10, causing the crypto investors to make a return of 21.10% on their investments for the week.

Ethereum Whales Aggressive Purchase Drives Prices Up Beyond 24%.

Following the beginning of the weekly trading session of January 4, similar to Bitcoin, Ethereum faced considerable amounts of fluctuation. The smart contracts tycoon leaped by greater than 19%, from an opening price of $975 to a high value of $1,165. Ethereum thereafter plunged by almost 25% to strike a low of $973.

The irregular price movement witnessed on Monday, January 4, produced liquidations of more than $1.2 billion all around the world. Nevertheless, due to the Whales aggressive act of going on adding Ether’s tokens on a spree, Ether was able to stabilize and retain a steady upwards trend. According to the on-chain data, 5 new addresses holding 100,000 to 10 million ETH became a part of the network throughout the week of January 4th, causing more reasons for the price of Ether to surge.

Given the significant increase in buying pressure, Ethereum increased by almost 33% to approach a high of $1,289 on Thursday, January 7, as shown by the trends in exchange rates of Coindesk. A substantial amount of traders and investors enjoyed the surging prices as they gained profits through them, which also caused in a noteworthy correction. However, Ether plunged by 18% because of rise in sell orders, consequently hitting a low of $1,067.

Following the downswing, Ethereum gained over 14% in market value, bouncing back quickly. The world’s top-second digital currency by market cap ended Friday, January 8, at a high of $1,218, according to the exchange rate of Coindesk. The holders of Ether gathered a return of 24.30% for the week due to the uptrend in price action. Learn more about increasing your returns on bitcoin equaliser robot.

In the Vicinity of a Correction

Several methodological indicators recommend that Bitcoin and Ethereum are entering an overbought region, in spite of the aforementioned cryptocurrencies uptrend in price performance. The Tom Demark (TD) Sequential indicator, for example, demonstrates sell signals in the shape of green nine candlesticks on the both of the aforementioned cryptocurrencies’ daily charts. The bearish developments estimate a one to four daily candlesticks correction or the start of a brand new downward countdown.

If authenticated, bitcoin and ethereum might witness a steep correction given that both of the cryptocurrencies did not experience any major pullbacks ever since the upside trend started during September 2020. The selling pressure might witness a spike, causing the Bitcoin’s value to repeat to $32,000 and push Ethereum in the direction of $1,000. The bearish position can only be annulled by a daily candlestick close about their respective yearly highs and might even cause further gains.

 

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