Earlier today, on October 14, the price of Bitcoin experienced an abrupt increase from $6,300 to $6,410 within minutes.
The unexpected rise in the Bitcoin price led traders to be optimistic about the short-term trend of the crypto market, as analysts previously stated that for the dominant cryptocurrency to demonstrate signs of recovery, it will need to first rebound to the range of $6,350 to $6,400.
However, in the past 12 hours, the price of Bitcoin fell back to $6,300, falling below the $6,300 mark to around $6,220.
Tether-Enabled Exchanges Showing Premiums
The real price of Bitcoin seems to be around $6,220, as shown by Gemini, Kraken, and Bitstamp. Tether (USDT)-integrated exchanges like Bitfinex, Huobi, and OKEx are showing a price of $6,350, possibly because of the drop in USDT.
On October 13, CCN.com reported that the price of USDT fell by around 2 percent from $1 to $0.98. As a stablecoin backed by the US dollars, the price of USDT has to be pegged to $1 at all times. But, a culmination of factors could lead a stablecoin to drop in value.
As the price of USDT fell due to three major reasons outlined below, USDT-integrated exchanges started to demonstrate a premium on Bitcoin.
- Traders moving to audited and regulated alternatives like Gemini USD and Pax
- Traders selling USDT to purchase cryptocurrencies
- Concerns around banking services obtained by Tether LLC
Hence, considering the actual price of Bitcoin and the yearly low volume of BTC at around $3 billion on Coinmarketcap and $2.1 billion on CoinCap.io, BTC and the rest of the crypto market is undoubtedly bear biased.
Technical indicators of BTC are not demonstrating oversold conditions, suggesting that a short-term recovery in the next 12 to 24 hours is not likely.
Unless an unexpected movement in the cryptocurrency market occurs or a major positive development occurs in a major market like the US, Japan, and South Korea, it is likely for BTC to maintain stability in the $6,100 to $6,300 range.
Edward Morra, a cryptocurrency technical analyst, wrote:
“Price finally climbed and closed above the 1h bullish EQ and POC, but also had a bearish SFP, stops below local lows are possibly to be taken as well. Upside is capped till $6,380 – $6,420 for now.”
The short-term trend of BTC is difficult to predict due to the poor technical indicators and low volume of BTC. Currently, BTC remains bear biased but historically, BTC has shown months of stability prior to engaging in a mid-term recovery.
Even 0x is Struggling
On October 12, the price of 0x (ZRX), the native token of the 0x protocol, peaked at 0.00014 BTC after the official announcement of Coinbase, the world’s largest fiat-to-crypto exchange, to list ZRX on its platform.
However, the price of ZRX has fallen from 0.00014 BTC to 0.000118 BTC since then, within a period of 48 hours. The listing of ZRX on Coinbase is especially significant because it represents the approval by the US Securities and Exchange Commission (SEC) of ZRX.
Still, 0x has fallen substantially within the past two days due to the low volume of the market.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: March 4, 2021 3:48 PM