As Ether Soars, Bitcoin Price Rebounds After Testing Lower Supports Near $44K

After hitting lower supports around $44,000 during Asia's late morning trading hours, Bitcoin is up over $500 on a four-hour basis.

The recovery from the 24-hour lows of $44,248 comes after a period of profit-taking on Tuesday due to short-term weariness. Bitcoin is now trading for approximately $45,000, down 2.9 percent from a 24-hour high of $47,157.

Bitcoin has cooled after several tries at the $50,000 price level, recalling past price behavior, but this may be less of a worry today, according to others, given demand from larger players.

According to Cynthia Wu, head of sales at Singapore-based digital asset services company Matrixport, “in contrast to the bull runs in 2017 and 2018, the present movement follows a more mature trend.” “The market environment has grown much more institutionalized – you now have proprietary traders in crypto hedge funds, crypto-offerings from foreign exchange brokers and institutions... that are dealing on a large scale.”

The current price trajectory for bitcoin, as well as the convergence of retail and institutional interest, indicate that investors, large and small, are looking for yield in crypto, which “will be there for a long time,” according to Wu.

Bitcoin's daily price movement has remained relatively steady, with the weight of the previously mentioned 200-day moving average pressing down on prices around $45,500, indicating that further sell pressure is on the way.

Though the altcoin market has remained stable, most of the top 20 by market cap have remained in the green over the last seven days.

Byron Goldberg, Australian country manager at crypto exchange Luno, stated, "Overall, the markets have seen a bullish trend continue this week; altcoins are up while bitcoin has remained flat." 

“Intriguingly, ether is marginally outperforming bitcoin week over week.”

According to Messari statistics, ether has risen 67.6 percent in the last 30 days, compared to bitcoin's 46.3 percent.

The London hard fork of Ethereum, according to Goldberg, is likely to be the trigger for higher prices on the world's second-largest crypto by market capitalization.

Indeed, ether's futures premium is 7.36 percent, compared to bitcoin's 2.8 percent, indicating that the crypto markets expect ether to grow faster than bitcoin over the next three months due to a change in institutional interest, according to Goldberg.

By press time, all significant cryptos in the top 20 had reported negative results over a 24-hour period, with dogecoin losing the most, followed by uniswap and chainlink.

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