Bitcoin and ether have experienced a decline in their value for the fourth consecutive day, trimming some of their gains from earlier in the year. However, other lesser-known cryptocurrencies have seen increased trading volume and price gains.
Bitcoin has been hovering around the $27,500 mark, with high levels of trading activity between $28,000 and $27,400. These levels are areas where prices can stall, as they represent historic areas of agreement between buyers and sellers. Lower volumes between $26,700 and $25,000 represent areas where prices could quickly decline due to decreased levels of historic agreement.
A decline into the lower range would mean that support levels will have been broken through to the downside. The next higher volume node sits at $23,950, roughly 14% below current prices. An important factor to watch is whether the spread between the upper and lower bands increases, which would indicate increased volatility and downside risk. Bitcoin’s Bollinger Band spread increased by 5% on Wednesday after seven days of declines.
On the other hand, ether’s Bollinger Band spread has been declining over the past seven days. The decreasing volatility coincides with high volume nodes at $1,811, which implies that near-term support exists for ETH prices.
Meanwhile, altcoins Litecoin and Bitcoin Cash have experienced positive gains, with both seeing increases of more than 3% and 10%, respectively, over the previous 24 hours. Trading volume for smart contract platform Cosmos’ ATOM token and decentralized network Filecoin’s FIL token also spiked, potentially due to network congestion on the Bitcoin and Ethereum blockchains.
Overall, while bitcoin and ether have declined in value, other cryptocurrencies have seen increased trading volume and positive gains. Investors should keep an eye on the spread between upper and lower bands to monitor potential volatility and risk.
Post time: May-10-2023