Market Wrap: Bitcoin Hits $10.4K; Ether Balances on Exchanges Fall to 7-Month Low

Bitcoin was trending upward before losing momentum; ether holders are moving their cryptocurrency off exchanges.

  • Bitcoin (BTC) trading around $10,284 as of 20:00 UTC (4 p.m. ET). Slipping 0.12% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $10,174-$10,488
  • BTC below its 10-day but above 50-day moving averages, a sideway signal for market technicians.

Bitcoin trading on Coinbase since September 8.
Source: TradingView

Bitcoin continued its upward momentum from Wednesday, with the world’s oldest cryptocurrency rising as high as $10,488 on spot exchanges such as Coinbase before losing some steam and now moving in a sideways pattern.

Constantin Kogan, partner at crypto fund of funds BitBull Capital, points to bitcoin’s relative strength index, or RSI, as an indicator of where the market might be headed. RSI measures price changes to indicate market conditions, such as “overbought” when there has been too much buying or “oversold” when there is too much selling.

Read More: Structural Issues May Be Causing BitMEX’s Low Bitcoin ‘Cash and Carry’ 

“The relative strength index has shifted in favor of growth after the price climbed to $10,355,” said Kogan. “There is a chance to return to the pivotal area of $10,756, but not everything is as rosy as we would like to see.”

Bitcoin trading on Coinbase since Sept. 1, 2020
Source: TradingView

Kogan said bitcoin price action will depend on the global economy’s performance for the balance of 2020.

“Many analysts predict that BTC will continue to rise in price in the long term,” Kogan added. “However, this year a breakthrough is unlikely. It is expected next year if we won’t see a global recession escalation.”

Read More: Pandemic Will Speed Bitcoin Adoption, Says DBS Bank Economist

In bitcoin futures, open interest has been hanging around the $3.7 billion mark for the past week.

Open interest in the bitcoin futures market the past week.
Source: Skew

“This represents a lot of…

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