Bitcoin’s price is rallying and traders also increasingly see investment opportunities on the Ethereum network.
Bitcoin (BTC) was trading around $9,563 as of 20:00 UTC (4 p.m. ET), gaining 2.5% over the previous 24 hours.
At 00:00 UTC on Monday (8:00 p.m. Sunday ET), bitcoin was changing hands around $9,298 on spot exchanges such as Coinbase. It began making gains around that time, appreciating 3% to over $9,600. The price is now well above its 10-day and 50-day moving averages, a bullish signal for market technicians.
A jump in the bitcoin market Monday after days in the doldrums mirrors the longer-term outlook of Fairlead Strategies’ Katie Stockton, who sees an upward trend for the world’s largest cryptocurrency by market capitalization. “Bitcoin remains wound up in its consolidation phase, a reminder why it’s a good idea to await breakouts [and] breakdowns,” Stockton told CoinDesk. “A breakout continues to appear more likely than a breakdown from an intermediate-term momentum perspective and would occur above $10,055 in our work.”
A “consolidation phase” is a term used by technical analysts to mark a period of indecision by traders overall. In fact, according to data from aggregator Kaiko, volatility of the top free-floating cryptocurrencies bitcoin, ether and XRP has trended down since June 7.
“Volume has been muted and volatility is getting coiled,” said Neil Van Huis, director of institutional trading at liquidity provider Blockfills.
Despite the pop Monday, Van Huis continues to expect selling pressure to affect the bitcoin market due to competition in the mining sector. “If we start to make a move up, it could really be interesting as the race for mining equipment comes into focus. This will play into access to financing or…