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Market Wrap: Bitcoin’s Price and Ether’s Dominance Sit at 2020 Highs

Bitcoin’s price is at its 11-month high as volatility bounces back up. Meanwhile, ether’s dominance has spiked on continued growth in decentralized finance (DeFi).

Bitcoin (BTC) trading around $10,998 as of 20:00 UTC (4 p.m. ET). Gaining 2.1% over the previous 24 hours. Bitcoin’s 24-hour range: $10,573-$11,422 BTC above 10-day and 50-day moving averages, a bullish signal for market technicians. Bitcoin trading on Coinbase since July 26.Source: TradingView

The price of bitcoin hit another 2020 high Tuesday, reaching $11,422 on spot exchanges like Coinbase. The last time the price of the world’s oldest cryptocurrency hit that level on Coinbase was Aug. 12, 2019. 

“Bitcoin has pushed decisively through not only psychological resistance of $10,000 but also a key level near $10,055,” said Katie Stockton, an analyst at Fairlead Strategies. However, she is skeptical the price can stay over $11,000. 

“There are some signs of upside exhaustion on this push higher, so we would be sure to await confirmation of the breakout before adding exposure to bitcoin. This would occur on consecutive weekly closes above $10,055,” she added. 

Bitcoin spot price on Coinbase the past year.Source: TradingView

“The Fear and Greed Index is in the ‘extreme greed’ zone, moving towards the overbought level,” noted Konstatine Kogan of cryptocurrency fund of funds BitBull Capital. “The first support is located at the level of $10,000. If bitcoin falls below this mark, then there is a possibility of a subsequent decline,” he added. 

Not all stakeholders are suspicious of the bitcoin market’s price run-up. One positive for traders is that volatility is making a comeback, according to data from aggregator CryptoCompare. 

BTC 30-day volatility since 1/1/19. Red dotted line is the historic low.Source: CryptoCompare

“Historical bitcoin volatility has bounced from its lowest point since March 2019,” said James Li, research analyst for CryptoCompare....

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