The cryptocurrency has had a turbulent few days with a tweet by Elon Musk sparking a heavy sell-off on Thursday before another tweet less than 24 hours later sent prices charging higher again. Market leader Bitcoin continues to underperform however and is currently -10% over the last 7 days, while Ethereum is +15% on a weekly basis. Across the spectrum, there are weekly winners and losers with Dogecoin down 11%, Cardano up 9%, Ripple down 16%, and Telcoin up 22%. A look at the top 100 coins by market cap shows far more losers than winners over the week, but these losses are currently being eroded away.
This week’s market sell-off was sparked by Tesla boss Elon Musk halting car payments in Bitcoin, bringing down another Musk favorite Dogecoin at the same time.
Bitcoin (BTC) and Ethereum (ETH) Crushed, Dogecoin (DOGE) Slumps 20% as Tesla Halts Bitcoin Payments
Late Thursday, Elon Musk then tweeted that he would work with Doge developers to ‘improve system transaction efficiency’ a bullish signal for the 4th largest coin by market cap.
Dogecoin (DOGE) Rallies Sharply on Elon Musk Co-Operation, Coinbase Adoption News
Elon Musk’s tweets are closely followed by the cryptocurrency and the volatility that they can cause is well known, especially for Musk’s favorites, Bitcoin and Dogecoin. The week’s sharp moves however show that the power of his tweets can move the market as a whole, a very unwelcome situation, even for the avid volatility chaser. Either that or the market as a whole is becoming very nervous about current cryptocurrency levels. Volatility is good, excessive short-term volatility is not.
The daily BTC chart remains neutral with yesterday’s sell-off candle in control of current price action. Bitcoin’s market dominance is now below 41% and continues to lag Ethereum. To regain an upward bias, BTC needs to open above yesterday’s high print at $52,900 and break above both the 20- and 50-day simple moving averages at $55,000 and $$56,100 respectively. The market is oversold, using the CCI indicator, suggesting that Thursday’s low at $46,070 is unlikely to be troubled.
Ethereum is back around the $4,000 level and looking to haul back all of Thursday’s losses. Ethereum continues to outperform the market as a whole and now has a 20% market dominance. While Bitcoin is currently twice the size of Ethereum, this differential continues to contract with the Ethereum/Bitcoin spread now at 785 from a low of 228 at the end of December. Much has made of the Ethereum overtaking Bitcoin to take the top spot – the flippening – and as things stand, this is looking every more likely.
Start mining bitcoin now
Start trading bitcoin now