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(WEEKLY NOTION): Cryptocurrencies Continue to Shine, Next Mover: Biden Stimulus Package, Progress of Covid-19 Vaccine Against Spread of New Cases

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BTC/USD (as of Feb 5, 2021, 11.40 a.m., GMT +8)

(WEEKLY NOTION): Cryptocurrencies Continue to Shine, Next Mover: Biden Stimulus Package, Progress of Covid-19 Vaccine Against Spread of New Cases

Source: Yahoo Finance

ETH/USD (as of Feb 5, 2021, 11.40 a.m., GMT +8)

(WEEKLY NOTION): Cryptocurrencies Continue to Shine, Next Mover: Biden Stimulus Package, Progress of Covid-19 Vaccine Against Spread of New Cases

Source: Yahoo Finance

DOT/USD (as of Feb 5, 2021, 11.45 a.m., GMT +8)

(WEEKLY NOTION): Cryptocurrencies Continue to Shine, Next Mover: Biden Stimulus Package, Progress of Covid-19 Vaccine Against Spread of New Cases

Source: Yahoo Finance

What an interesting week it has been for cryptocurrencies! Bitcoin.com reported that the crypto-economy has surpassed the $1 trillion-mark mid-week, a joint effort by different cryptocurrencies.

Let’s take a look at how the week has been for BTC/USD, ETH/USD, and DOT/USD.

BTC/USD

Although it began the first week of February at $32, 474.39, BTC/USD has since been travelling on an upwards slope this week.

The flagship cryptocurrency remains the dominant cryptocurrency, making up 62% of the aggregate market total as of Feb 3, or $682 billion, as reported by Bitcoin.com, It is undeniable that the ‘digital gold’ has received its share of attention as the global pandemic shook the confidence of investors in more traditional investment vehicles, and started looking at alternatives, such as Bitcoin.

At present time, the price has been dipping downwards and stands at $37,153.50. The Relative Strength Index (RSI) has moved upwards from a low of 23 earlier today and is currently at 49. 

Analyst Akash Girimath from FX Street believes that $44,300 is within reach, if the buying pressure persists. He also reported that a recent purchase of 415,000 tokens from 700,000 addresses has led to the BTC/USD breaking through the $35,000 level this week, and subsequently increasing Bitcoin’s market value by 7%.

ETH/USD

Of late, Ethereum has also been gaining popularity amongst traders, leading to some speculations even hinting that Ethereum could soon overtake Bitcoin. Taking a look at Ethereum’s performance, as of Feb 3, the cryptocurrency has risen 273% during the last 90 days and 724% for the year, as highlighted by Bitcoin.com. This week, it also achieved a historic milestone when it reached a market capitalisation of $183 billion and broke through the $1,600 level, marking an all-time high.

At present time, the price is at $1,601.39. However, the Moving Average Convergence Divergence (MACD) is indicating a bearish reversal, and the RSI is currently at 37, near to an oversold condition.

FX Street reports that ETH/USD bulls seem set on surging upwards to $2,000 and even $3,123, the 261.8% Fibonacci level. One thing’s for certain: traders would be keeping a close eye on the possible emergence of a competitor for Bitcoin.

DOT/USD

Polkadot is another rising newcomer in the world of digital currency. On Feb 3, it achieved an all-time high of $19.83. With it, DOT/USD’s market capitalisation exceeds $17.8 billion, close to the market capitalisation by XRP/USD. The troubled waters of XRP/USD remain uncertain, as the Ripple’s battle with the U.S. Securities and Exchange Commission (SEC) lingers.

However, FX Street cautions of a correction that is on the horizon, as indicated by many on-chain metrics. This is good news for new buyers who are bullish on the potential of Polkadot.

At the time of writing, the price is at $20.48, and is above the 50-day Moving Average (MA).

The RSI is on an upwards trend today and is currently near an overbought condition at 67.

CONCLUSION 

These days, President Biden is earnestly trying to push through his gargantuan stimulus package, with a recent update that the U.S. House of Representatives working to fast-track the bill without Republican support. In the meantime, the world continues to fight the war (and hopefully win) against Coronavirus. In a world grappled by pandemic, many things are uncertain. The rising performance of cryptocurrencies this week gives us a clue that as things get shaken up, traders are looking out to a new world, and one where cryptocurrencies have a solid footing.

FOLLOWME BTC/USD Overall User Sentiment (as of Feb 5, 2021 at 11.50 a.m.)

Short – 69.00%

Long – 31.00%

BTC/USD (as of Feb 5, 2021, 11.40 a.m., GMT +8) - $ 37,153.50

ETH/USD (as of Feb 5, 2021, 11.40 a.m., GMT +8) - $ 1,601.39

DOT/USD (as of Feb 5, 2021, 11.45 a.m., GMT +8) - $ 20.48


Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

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