The cryptocurrency has had a turbulent few days using a tweet by Elon Musk sparking a heavy sell-off on Thursday prior to another tweet significantly less than 24 hours later shipped prices charging higher again. Market leader Bitcoin proceeds to underperform nevertheless and is currently -10% during the previous 7 days, whilst Ethereum is +15percent on a weekly basis. Around the spectrum, you will find weekly winners and losers with Dogecoin down 11 percent, Cardano up 9 percent, Ripple down 16 percent, and Telcoin up 22%. Check out the top 100 coins from market cap shows far more losers than winners over this week, but these reductions are now being eroded away.
This week’s marketplace sell-off was sparked by Tesla boss Elon Musk halting car obligations in Bitcoin, bringing down another Musk favorite Dogecoin at precisely the same moment.
Late Thursday, Elon Musk then tweeted that he would work with Doge developers to’improve system transaction efficiency’ a bullish signal for the 4th biggest coin from market cap.
Elon Musk’s tweets are followed by the cryptocurrency and the volatility that they can cause is well known, particularly for Musk’s favorites, including Bitcoin and Dogecoin. The week’s sharp moves however show that the energy of his tweets can go the marketplace as a whole, an extremely unwelcome situation, even for the avid volatility chaser. Either that or the market as a whole is becoming very nervous about present cryptocurrency levels. Volatility is great, excessive short-term volatility isn’t.
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 percent and has been lag Ethereum. To regain upward bias, BTC should open over 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 index, suggesting that Thursday’s low at $46,070 is not likely to be troubled.
Ethereum is right back around the $4,000 level and looking to haul back each of Thursday’s losses. While Bitcoin is currently double the size of Ethereum, this differential continues to contract with all the Ethereum/Bitcoin spread now at 785 from a low of 228 in the end of December. Much has made from this Ethereum overtaking Bitcoin to take the top spot — the flippening — and as matters stand, this is looking each more likely.
