The markets showed mixed behavior on May 11th. Bitcoin (BTC) bounced back from Monday’s decline to $ 53,000 and rose to $ 56,862. However, the digital asset continues to face resistance at the $ 57,000 level.
Ether (ETH) has also topped the $ 4,100 mark again. but according to the Cointelegraph analyst, Marcel Pechman, has seen bullish sentiment for Ether in the past few weeks began to fade because traders are wondering whether the new all-time highs will be sustainable in the short term.
Data from Cointelegraph Markets Y. TradingView show that lBitcoin bulls defended an overnight sale on May 10 that temporarily saw the price of BTC drop below $ 54,000. before the downturn buyers absorbed sales and pushed the price back above $ 56,000.
While the more established cryptocurrencies have gotten stuck in a side market, dog-themed meme coins are inclusive Shiba Inu (SHIB) Y. Dogelon Mars (ELON), followed the example of Dogecoin (DOGE) and saw theirs Prices skyrocket for three-digit profits.
Ethereum bulls are taking a break
Bitcoin’s price stagnation in the $ 50,000- $ 60,000 range in recent weeks is due in part to the rise in the price of ether. This has caught the attention of institutional investors seeking exposure to something other than BTC. The growing demand for Ether can be clearly seen in the price development of the ETH / BTC pair.
According to David Lifchitz, managing partner and chief investment officer of ExoAlpha, Ether’s most recent all-time high was partly due to a “continuous rotation away from bitcoin” This helped drive the price of ether “to $ 4,214 before suddenly falling to $ 3,658 (down 13% in one hour).”
The crash in the cryptocurrency market coincided with a sell-off in the US equity markets, which hit the NASDAQ index particularly hard. Lifchitz found that Bitcoin and other cryptocurrencies were finally able to do this “get back half the losses from the maximum”.
While what was happening in the US markets “could be explained by some correlation operations that resulted in rapid profit-taking on cryptocurrencies”, Lifchitz also pointed to the possibility of a more organized sell-off, with some traders taking advantage of volatile market conditions.
“It could have been a staged sell-off too, as Ethereum was at its all-time high after an impressive ride (meaning ETH was prone to a quick crash) to scare off the weak hands and shake them, creating a cascade of sales effect before buying back ETH at a lower price, which is reflected in the even higher purchase volume immediately after the sell-off. “
Lifchitz noted that only:
“Twenty-four hours later, Bitcoin is back in the middle of its twilight zone (between $ 50,000 and $ 60,000) and Ether is slowly creeping over $ 4,000. So overall, it was a normal day in the land of cryptocurrencies.”
Ben Lilly, Co-founder and analyst of Jarvis Labs, provided more information on market movements over the past week, and stressed the increase in profit in the chain over the past week, saying it had “moved a lot of capital through altcoins”.
“When capital moved from one currency to another, profits were made as Bitcoin fluctuated sideways. What we saw on May 10th was the end of that phase.”
Altcoins are taking the market to new heights
The entire altcoin market has been weighed down by declining movements in the cryptocurrencies with the highest market capitalization. EOS led the day with a 50% gain that brought the price to $ 13.92 after Block.one announced it raised $ 10 billion to launch an EOS-based cryptocurrency exchange “Bullish Global”.
Yearn.finance (YFI) broke out of its stagnant range to climb 58% to hit a new all-time high above $ 80,000. while the price of Revain (REV) rose 130% to hit a multi-year high of $ 0.049.
The total market cap for cryptocurrencies is currently $ 2.474 trillion, and the dominance rate of Bitcoin is 42.8%.
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