The crypto market is in rude health this morning with leading coins all flashing green. An Ethereum-inspired rally looks like it has real legs with daily volume mushrooming to $27 billion, according to coinmarketcap.
Total crypto market cap has hit $128 billion. Bitcion is trading 4% higher at $3,791, passing the near-term high it hit just over a week ago.
The looming Constantinople upgrade to the Ethereum network may have attracted buyers of the smart contract platform’s ETH token.
ETH is 13% higher at $143, EOS 10% at 10.8% and Bitcoin Cash up 9.6% at$133.
Only two coins are in the red from among the entire top 100. Big gainers lower down the alts are Bitcoin Gold, up 22% to $12.44, Holo 14% higher at $0.00144 and 47th placed coin Komodo 18% the better on $0.94. Ark is up 25% to $0.68. The highest mover in the top 100 is Wax, advancing 46% to $0.051.
The Ethereum upgrade was delayed after a bug was found in the code and the fork has now been rescheduled for the end of February.
BitMex on top
Across exchanges with both fees and no fees, BitMex continues to rule the roost with a total daily volume currently standing at $1.86 billion, followed by South Korea’s Bithumb in $1.1 billion and Binance in third place on $0.91 billion.
Market sentiment has been buoyed by a slate of positive news on the institutional and regulatory front.
Although the launch of the JPM Coin by JPMorgan has been slated in some quarters it has confirmed the credibility of the crypto asset class for those who had their doubts.
The news led to a flurry of stories in the mainstream media that may have helped to add some new buyers to the market.
However, institutional flows are likely to be increasing given that indications the bottom is near or even upon us, encourages accumulation. A recent Grayscale report for 2018 Q4 showed strong interest from institutions despite the lack of interest among retail investors.
Add to that good mood music from the US SEC commissioners Jackson and Peirce and news that the Bitwise bitcoin ETF is up for approval and it has helped to underscore the much talked about case for institutional money flows.
FidelityDigital Assets is launching next month according to a Bloomberg report on the matter, further helping to at least provide a floor for price.
Conversely, the lack of downward pressure on the price fin the wake of the Canadian exchange QuadrigaCX implosion is only a sign of market strength.
BTC technical analysis
On the technical front, bitcoin and he wider market is far from out of the woods.
Although today’s price action has taken the price above the 50-day simple moving average (purple line) the rest of the week could be critical to see if more progress can be made that establish bullish momentum and a challenge above $4,000.
Yes others see the $5,000 mark as the critical psychological; barrier to be broken.
Mati Greenspan, senior market analyst at eToro said: “It seems a short-term recovery is in sight as strong momentum has been gained in the crypto market over the last 24 hours. Ethereum’s led the charge with a double digit surge but many other major crypto players including Bitcoin and XRP have followed suit.
“These optimistic price movements, combined with a strong volume of approximately $27 billion in the market, may well suggest that the long-awaited bull market is not far away. Still, until Bitcoin sees a strong breakout above the psychological level of $5,000, the longest bear market in crypto’s short history continues.”
The bitcoin price on the daily chart is approaching a breach of the near term down trend in play since December. A move above $3,800 would be confirmation.
The $5,000 level roughly maps to the 200SMA. (Green line).