Bitcoin (BTC) continued its ascension on Monday, rising 3% on average volume. The largest cryptocurrency by market capitalization surpassed $24,000 earlier in the day and remained above that threshold in the afternoon.
BTC’s hourly charts (below) show that the bulk of the push higher occurred between 10 a.m. and 12 p.m. UTC time before the price steadied.
Bitcoin's gains have for the most part dovetailed with traditional markets. On Monday, the Dow Jones Industrial Average rose 0.09%. The tech-heavy Nasdaq Composite Index, meanwhile, fell 0.10% and the S&P 500 slipped 0.12%. Correlations between BTC and the three indexes remain above 0.60, indicating a strong relationship between BTC price movements and stocks.
Correlations range between -1 and 1, with higher figures signaling a stronger relationship. Investors often consider those correlations when the price movement in one group of assets outpaces the price movement in another.
Because BTC’s spike occurred outside of U.S. trading hours, traders may be watching whether the cryptocurrency's price continues to align with equities.
Ether (ETH) was recently up 3.5%. Most of the increase also came during overnight hours in the U.S.
Altcoins rose, as well, with avalanche (AVAX) up 2% and chainlink (LINK), up 9%.
●Bitcoin (BTC): $23,929 +3.1%
●Ether (ETH): $1,784 +4.1%
●S&P 500 daily close: 4,140.06 −0.1%
●Gold: $1,806 per troy ounce +1.9%
●Ten-year Treasury yield daily close: 2.77% −0.07
Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.
Bitcoin’s hourly chart moves into overbought territory, reverses course intraday
Investors continued to eye hourly and daily charts for signs of the crypto market’s future direction, which remains on tenterhooks amid mixed economic data. BTC’s hourly chart showed significant trading activity from 10 a.m. to noon (UTC) on above-average volume.
During that period, bitcoin rose about 3% with U.S. markets opening to bitcoin trading over $24,000. The 10-period relative strength index (RSI) rose to 83 as bitcoin’s price increased. RSI is a technical indicator that measures price momentum.
Readings below 30 imply that an asset is oversold, while a reading above 70 implies that an asset is overbought. BTC prices appear to have retreated following the RSI reading of 83 that occurred during the 4 a.m. candle. A candle is a visual image on charts to describe a price hike.
Bitcoin’s daily chart provides additional context to today’s move
BTC prices should continue to advance along a trendline noted in the Aug. 3 Market Wrap. BTC’s price could crack $28,000, although investors shouldn’t interpret that market as a price target.
Trendlines can be useful to traders in determining the direction and strength of a price move, particularly when used in conjunction with other technical indicators.
The trendline here is being used jointly with the RSI. The overbought reading (see chart above) showed an overbought reading of 70, but the daily chart shows a reading of 60, which falls below the overbought threshold.
BTC prices appear to have retraced from their sharp uptick in early morning trading, while maintaining what appears to be a general uptrend that began around July 13.
Derivatives markets also indicate a positive sentiment
BTC funding rates have turned positive again, following a brief turn negative on Aug. 3. Funding rates represent payments to traders who are long or short bitcoin. Those payments serve as a proxy for market sentiment.
A positive funding rate implies that traders who wish to be long BTC (have a positive view of the digital currency) are willing to pay traders who are short (have a negative view). Negative funding rates imply the reverse.
All told, positive funding rates often imply that crypto traders are bullish. BTC funding rates have been positive for all but five days since July 1.
- Vitalik Buterin Plays Down Impact of Ethereum Forks After Merge: The blockchain’s co-founder said it's unlikely that the platform will be “significantly harmed by another fork.” Read more here.
- Ether's Deepest 'Backwardation' Since 2020 Crash Shows Traders Prepping for Ethereum PoW Split: Traders have been buying ETH in the spot market and selling ether futures to withstand volatility. Read more here.
- Dragoma Supporters Fall Victim to $3.5M Rug Pull: The funds from the Polygon-based Web3 game have been siphoned out of the project and into centralized exchanges. Read more here.
- Listen 🎧 : Today’s "CoinDesk Markets Daily" podcast discusses the latest market movements.
- Binance Says It Will Remove WazirX Off-Chain Transfers Hours After Indian Firm's Founder Says They Were Restarted: The move comes after an argument erupted between the two exchanges' founders over ownership and regulatory actions against WazirX.
- Crypto Lender Hodlnaut Freezes Withdrawals, Citing Market Conditions: The firm also pulled out its application to be regulated in Singapore.
- Crypto-Mixing Service Tornado Cash Blacklisted by US Treasury: The department barred its use by U.S. persons as a matter of national security because North Korean hackers allegedly use the mixer to launder stolen crypto funds.
- After Countless Bungles, Compass Mining Tries to Change Course: The company that set out to make crypto mining available to retail investors has had to put out its own fires.
- pSTAKE Announces stkBNB to Unlock Liquidity on Staked BNB Token: pSTAKE will allow users to stake any non-zero amount of BNB.
- Galaxy Digital's Q2 Net Loss More Than Triples to $554.7M Amid Market Downturn: The firm's assets under management fell 40% from the first quarter.
- SoftBank Reports Record Quarterly Loss: The company, which has invested in crypto projects, cited a global tech sell-off and weaker yen.
- Iris Energy Turns On 41 Megawatts of Bitcoin Mining Machines Ahead of Schedule: The company plans to add another 50 MW by the end of next month, bringing its total hashrate to 3.7 exahashes per second.
- UAE to Clamp Down on Crypto Real Estate Money Laundering: Authorities want to trace payments made in bitcoin and ethereum as the country develops as a crypto hub.
- Multi-Blockchain Platform Geeq Receives $25M Capital Commitment From Investment Group GEM: The financing differs from traditional funding rounds in that the flow of capital depends on how Geeq performs.
|Stellar||XLM||+8.5%||Smart Contract Platform|
|Polkadot||DOT||+5.3%||Smart Contract Platform|
|Solana||SOL||+4.3%||Smart Contract Platform|
|Loopring||LRC||−0.5%||Smart Contract Platform|
|Terra||LUNA||−0.1%||Smart Contract Platform|
Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive and standardized classification system for digital assets. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.