As crypto volatility rises, Ether rises, breaking through the ‘Musk Dip'

Tuesday's crypto assets are largely green, yet uncertainty is increasing throughout major cryptocurrencies.

As of 21:00 UTC, Bitcoin (BTC) was trading around $43,324 USD. 2.1 percent decrease in the previous 24 hours.

The 24-hour range for Bitcoin is $42,658-$45,736.

As of 21:00 UTC, Ether (ETH) was trading around $3,402. Gaining 0.22 percent in the last 24 hours.

The 24-hour range for Ether is $3,209-$3,551.

The volatility of the Bitcoin and cryptocurrency markets is increasing.

Bitcoin, the world's most valuable cryptocurrency by market capitalisation, was down 2.1 percent as of press time, falling as low as $42,658 about 23:15 UTC. BTC was trading below the 10-hour and 50-day moving averages, indicating a bearish trend to market analysts.

However, crypto investors seem to be returning to buying some cryptocurrencies after the mercurial Elon Musk seems to have slowed his crypto Twitter operation – at least for the time being.

“We warned last week, only a few hours before Elon Musk's explosive tweet about bitcoin, that there was more downside risk than upside potential,” said David Lifchitz, chief investment officer at quant company ExoAlpha. ”In terms of volatility, it has certainly risen in recent days, but not to historical stratospheric levels. So there's no need to worry just yet.”

According to CoinDesk Research results, which monitors major blockchain-based assets, crypto volatility has increased since the beginning of April. BTC volatility is increasing, although at the lowest level on the spectrum, while Ether volatility is approaching 110 percent, one of the highest as of Monday's closing results.

All is relative

Vishal Shah, founder of derivatives exchange Alpha5, believes that, despite recent uncertainty, bitcoin remains reasonably stable as compared to assets such as ETH.

“I think overall volatility is a little subdued right now,” Shah said. “We've been in a wide but measured range in BTC for around three months now.”

Over the last three months, spot bitcoin has ranged from $42,658 to $64,829 (a record high).

The short-term momentum is eroding.

“Short-term momentum has weakened behind bitcoin, with resistance found around $60,000, leaving a lower peak on the chart compared to April,” said Katie Stockton, a technical analyst for consulting company Fairlead Strategies. “Despite its slow intermediate-term momentum, bitcoin's long-term momentum remains positive, favouring a bullish bias beyond the corrective phase.”

Trading volumes are increasing.

Bitcoin volume has been increasing since the beginning of 2021, which is often a good momentum measure. Over the last year, average spot BTC volume on eight major CoinDesk 20 exchanges was $271 million. Since the beginning of 2021, the average has more than doubled to $545 million per day.

Although cryptocurrency is on the rise, On Tuesday, Michael Gord, CEO of trading firm Global Digital Assets, reported that the most recent Elon Musk-related crypto shakeout is positive overall.

“No market will continue to rise indefinitely, particularly with the recent memecoin craze,” Gord said. “I believe this was a safe dump in which ventures with little usefulness were shook out.”

The Bitcoin-Ether association is increasing.

As of 21:00 UTC, the second-largest cryptocurrency by market capitalisation, Ether, was trading around $3,402, up 0.22 percent in the previous 24 hours.

About 06:00 UTC, ETH reached a high of $3,551. The asset is close to the 10-hour and 50-day moving averages, indicating a bullish-to-sideways trend for market analysts.

“Initial support for Ether can be gauged by its most recent breakout point near $2,038,” Fairlead's Stockton said. “Momentum in the medium term is positive, but it should moderate.”...

#cryptopirates #ethereum #bitcoin

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