For several days, the queen of cryptocurrencies has been trading above $50,000. However, some analysts are calling on investors to be cautious.

On the cryptocurrency market, the current trends are confirmed: investors are especially interested in ether. This Wednesday, February 21, the second cryptocurrency on the market exceeded the symbolic threshold of 3,000 dollars. As a result, bitcoin pays the price. The correction is taking on fairly significant proportions, the queen of cryptocurrencies quickly falls back towards $51,000.

This could even go further, as analysts believe that bitcoin is vulnerable above $50,000. At the same time, we remain on a technical path which now leads us straight towards the absolute high around 70,000 dollars before the next halving in April. Isn’t bitcoin going up too fast, too strong?

46.000 dollars

The decoupling of dynamics between bitcoin and ether amplifies the movement, with investors taking their profits on bitcoin to go directly to bet everything on ether to take advantage of the moment. A graphic analyst also foresees a possible and fairly rapid return towards $46,000, to find support.

Moreover, fundamentally, bitcoin seems to have exhausted all the momentum it enjoyed thanks to the adoption of spot bitcoin ETFs. Now, we are more focused on technical trade-offs around who will provide the lowest management fees. So precisely, the prices are no longer the problem and they are falling. This is also causing a significant decline in the Coinbase platform, which lost almost 4% yesterday on the Nasdaq, as well as the large listed bitcoin miners, such as Marathon Digital which is -9%, Riot Platforms -1 .3% or even Hut8 which made -6%.

Antoine Larigaudrie with Pauline Armandet


Leave a Reply