After retracing and touching $17,500 between Friday and Saturday, Bitcoin has put itself back in upward gear and in the last few hours is back up to $19,500, close to the record reached on December 1 just short of $20,000, an all-time high.
All eyes are on Bitcoin because of this recovery, which on the one hand is suspicious, but on the other hand is bringing sentiment back to the highest levels in days.
The fear and greed index has been hovering above 90 points for more than a month, since the beginning of November, except in rare instances when it has dropped just below this threshold and then immediately recovered. This is by Bitcoin Revolution the first time that such sustained fluctuations have been recorded, and this is one of the reasons behind this current upturn.
A rise that is being followed by most tokens today. In fact, just over 60% of cryptos today are in positive territory. Bitcoin Cash (BCH) stands out among the best, +2.6%, and Binance Coin (BNB) does better +3.6%.
Among the top 100, Aave and Algorand (ALGO) are the best risers, both up 7% from yesterday’s levels.
Volumes are suspicious, although not at the record levels of the beginning of the month, with average daily trading levels at $145 billion.
It is suspicious because Bitcoin’s rises lead to 2.3 billion trades in dollar equivalent, which is below the average trade since the start of the month. This is the second day in three consecutive that BTC trades are below 2.5 billion. This is an indication not seen since the early days of December, after the explosion seen with the records at the beginning of the month. Ethereum too, despite a decidedly buoyant Sunday for volumes, fell below $1 billion traded yesterday.
The market cap is back above $560 billion, down from the $590 recorded on 1 December, but despite the difficulties it is stabilising at the highs of the last two years.
Bitcoin held on to a 63% market share, with Ethereum stable at 11.8%, while Ripple fell to 4%, its lowest level since the last week of November after a strong rally in late November and early December that brought its market share back above 5%.
Ripple is still under attack from profit-taking after a strong rally on 24 November that saw prices multiply 2.5 times in less than a week. After touching 80 cents, Ripple began its descent, with the price struggling in the 50 cents area. In these hours Ripple goes below the psychological level of 0.5 dollars, at 48 cents.
DeFi is once again close to the 15-billion-dollar mark set exactly one week ago. This is due to a slight increase in the price of Ethereum, but also to the number of ETH that continue to grow, albeit at a slower pace than in October and November. The number of ETH traded on DeFi has risen again to over 7 million, a level not seen since the last week of November.
The market leader is Maker with 2.6 billion, followed by WBTC and then Aave which climbs to 3rd position over Compound, 5th is Uniswap.
Bitcoin reacts after touching lows between Friday and Saturday, touching $17,500, bringing it back to within a step of the historical records of December 1.
The signal in the short term is strong, but in the medium term and based on the current quarterly cycle that began in late September and early October, it is a delicate phase that will give clearer indications in the coming days if the price manages to easily exceed $ 20,000, setting a new record for the Christmas holidays.
This is something that has been lacking in the cryptocurrency sector, which has always seen the second half of December marked by difficulties.