Bitcoin gained, while other leading coins stagnated on Sunday, as the cryptocurrency market attempted a recovery after a rout earlier in the week.
Bitcoin Climbs After Bloodbath
Bitcoin consolidated in the $69,000-$71,000 zone over the weekend, after tumbling below $61,000 on Thursday. Trading volume for the apex cryptocurrency fell 32% in the last 24 hours.
Ethereum also oscillated between $2,066 and $2,148, with $2,000 acting as a strong support for the second-largest cryptocurrency. XRP and Dogecoin fell 0.23% and 2,17%, respectively.
Over $336 million was liquidated from the market in the last 24 hours, according to Coinglass, with bearish short bets alone accounting for $236 million.
Bitcoin’s open interest fell 0.94% to $46.07 billion, more than 50% lower than it was at its peak in October.
The “Extreme Fear” sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.39 trillion, following an increase of 1.04% over the past 24 hours.
Stock Futures Rally
Stock futures edged higher overnight on Sunday. The Dow Jones Industrial Average Futures rose 93 points, or 0.19%, as of 7:42 p.m. EDT. Futures tied to the S&P 500 gained 0.29%, while Nasdaq 100 Futures added 0.56%.
Investors will keep an eye on the January jobs report, due on Wednesday, for key insights into the labor market and broader economy. Additionally, the Consumer Price Index report for January is slated for a Friday release.
Meanwhile, precious metals rebounded, with spot gold trading up 1.24% to $5,022 an ounce, while spot silver rising 2.48% to $79 per ounce.
Has Ethereum Bottomed?
Widely followed cryptocurrency trader and analyst Ali Martinez noticed Ethereum’s Market Value to Realized Value ratio dipping below the 0.80 pricing band, a level that signaled market bottoms in prior cycles.
“With the price dropping below $1,959, that signal is flashing again,” the analyst stated.
These pricing bands use statistical deviation from the MVRV ratio’s all-time average to identify potential market tops and bottoms.
Michaël van de Poppe, another popular cryptocurrency market commentator, ruled out a “quick reversal” for Bitcoin, noting that $65,000-70,000 is the bottom area of the range for the coming weeks. However, tests at $85,000, they said, are “definitely on the cards.”
Photo Courtesy: KateStock on Shutterstock.com
