Bitcoin Pinned Near $45,000 as Trading Turns Sideways

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Created by TradeOr

3rd Party Analysis 18 Aug 2021

Key Takeaways

  • Bitcoin and crypto assets trade relatively muted and near the flat line
  • In the longer term, bitcoin’s price remains strongly to the upside

Bitcoin Pinned Near $45,000

The largest cryptocurrency in the market, bitcoin, has been rangebound near the area of $45,000 to $48,000 over the past week. Since the weekend, major crypto assets have been largely trading sideways as the recent rally has halted.

A few times over the last few days, bitcoin bulls attempted to regain the $50,000 level. Efforts fell short as there wasn’t a strong and sustained buying momentum and bitcoin’s price set a high of $48,100 per coin on Saturday, the highest for the month so far.

Bitcoin advocates are confident the rally is only taking a breather before the next leg higher. According to them, the flagship cryptocurrency is now out of the woods and is expected to continue its ascend. On the other hand, crypto opponents argue the recent high-speed climb could not be sustained and sooner or later, prices will fall back to lower levels.

While both camps hold their respective opinions, bitcoin is showing signs of consolidation around current market price of $45,000. On Tuesday, the price of the digital currency finished its second consecutive day in negative territory amid a broader crypto market decline.

Major Tokens Take a Stumble

Weaker performance yesterday defined the movements in other major tokens, too. After ether climbed to a three-month high on Monday, reaching a session peak of $3,335, the same day the price slid about 3% to close at $3,160. The sentiment was barely changed yesterday and the Ethereum token logged a second straight day of losses. Ether was down about 2.9% on Tuesday, closing at $3,070.

Presently, the second-largest coin is trading relatively unchanged at $3,050 per coin. Ether now commands about $370bn of market capitalization, or a market share of nearly 19%. The entire value of the cryptocurrency market is sitting at $1.91tn, of which bitcoin owns $850bn, or a share of 44%.

Over the longer term, a few positive developments have indicated the cryptocurrency market’s ability to rise back from relatively significant blows. After fundamental regulatory roadblocks erased more than 50% of bitcoin’s value and kept it pressured for about two months, the original coin has pared half of the losses in a matter of less than a month. Meanwhile, the entire market cap has almost doubled in value for the same period.

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