March 7, 2021

A Crypto Investor

Just another Crypto Guys Blog

Price analysis 1/8: BTC, ETH, XRP, LTC, ADA, DOT, BCH, XLM, LINK, BNB

Bitcoin (BTC) again rose to a new all-time high on Friday as bulls continued to buy on every minor dip. As the price reached a new high, Bitcoin’s market capitalization soared above $775 billion, taking it past Facebook’s market cap, according to the website Companies Market Cap. This means, there are only six companies in the world that currently have a greater market cap than Bitcoin. 

The pace of the rally seems to have caught several traders off guard. Popular analyst flibflib told Cointelegraph that the sustained rise points to “accumulation algorithms and that accumulation algorithms seldom care about the price when their goal is to invest X$ in Y time period.”

Daily cryptocurrency market performance. Source: Coin360

The bull market has attracted huge trading activity that has smashed all previous volume records. Along with the spot markets, Bitcoin futures trading volume has also surged, hitting over $97 billion in a 24-hour period, according to data from Skew.

Traders must keep in mind that when the market reverses course, there will be a lot of selling to deal with and that could result in a sharp correction. On the way to new all-time highs, the market did not stop at resistance levels and during the fall, these same support levels may prove useless. Therefore, traders must follow their money management principles and not be blinded by greed.

Let’s study the charts of the top-10 cryptocurrencies to spot any topping patterns or levels where the markets may reverse direction.