Good news for the cryptocurrency: Major cryptocurrencies recovered significant psychological thresholds on Tuesday.
Cryptocurrencies have been on the rise since Tuesday morning, with significant psychological thresholds being restored.
This Wednesday, the queen of cryptocurrencies, bitcoin is trading over $20,000 and ether is over $1,500, so the recovery is particularly massive. According to Coinmarketcap data, the bitcoin price is up more than 7% in 24 hours, while the ether price is up more than 14%.
As a reminder, in the wake of this summer’s cryptocurrency crash, bitcoin and ether have fluctuated to the point of losing more than 70% of their value since their highs last November.
One could say that the markets are regaining their appetite for risk, but the positive trend, which admittedly is a bit choppy, has been in place for several days. If the trend is very clear on the curves, then this bounce can be explained by crossing psychological or technical boundaries ($20,000 for bitcoin, $1,400 for ether), while we were at the corner that left us and came back out from the bottom. Many investors positioned to the downside were forced to buy back the cryptocurrency, which amplified the bounce, a so-called “short squeeze.”
Most of the movement was due to massive buying by “whales”, you know those market participants who own a lot of cryptocurrency, who have a lot of amplified influence. Everyone has been looking at each other as players on the starting line for a few days, and on Tuesday at 9:00 everyone leaves at the same time.
New acceleration stage
We even have a new phase of acceleration in the last few hours, which makes it possible to erase an air pocket for about twenty days. We are more or less returning to the levels they were at the beginning of the month. Now, if we look at the upside, it is clear that ether has gone up like a rocket in the last hours, so it is the second cryptocurrency in the lead. While bitcoin and ether are on the rise, not all cryptocurrencies are. For example, xrp, the ripple cryptocurrency, is lagging far behind. But there may be potential in this aspect for the coming days.