Bitcoin’s upside momentum is gaining traction as a break above $12,000 serves as an upside catalyst for the first digital coin. At the time of writing, BTC/USD is changing hands at $12,550 amid strong bullish sentiments and growing trading volumes. Considering that the price growth is accompanied by increased trading volumes, one might suggest that the trend will gain traction.
Many experts believe that at this stage Bitcoin (BTC) is driven by FOMO, while the market repeats the situation of late 2017. The excitement around Facebook’s Libra coin and potential crypto ban in India are also cited as major catalysts to the Bitcoin’s rally.
ETH/USD bulls have been in control of the market for three days in a row. While the price has gone up from $316.50 to $333.50 so far this Wednesday alone, the bulls will need to push it up even further to $350 to continue their upward momentum. The hourly chart shows us that ETH/USD has spiked from $316 to $331 in just one hour. This could mean that the price is currently overvalued and may face bearish correction.
The 20-day Bollinger band jaw has widened, so it indicates increasing market volatility. The last session has taken the price above the upper curve of the Bollinger band, suggesting that it is overvalued. The price is trending in an upwards channel formation and above the 200-day simple moving average (SMA 200), SMA 50 and SMA 20 curves.
ETH/USD daily chart
Ripple’s XRP, the third largest coin by market value, has retreated from the intraday high of $0.4783 to trade at $0.4720 at the time of writing. XRP/USD hit the area above $0.50 during the weekend but failed to hold the ground. XRP/USD has gained about 2% in recent 24 hours amid range-bound trading.
Ripple’s market value has settled at $20.2 billion, while the trading volumes are registered at $2.2 billion, twice as high as an average long-term figure.