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Bitcoin Up 5% to $7,000 but Ethereum Leads the Cryptocurrency Charge

April 6, 2020 at 14:19 by Matt Jackson

Bitcoin price is back above $7,000, currently trading at $7,150, having posted a 5% gain over the past 24 hours. The movement means that Bitcoin is now back level since the start of the year, despite crashing to a yearly low under $4,500 in March. The rest of the cryptocurrency is also seeing green, with Ethereum proving to be the pick of the big coins, adding nearly 10% to its prices and rising above $150.

Major exchanges have been reporting an uptick in the number of new users registering for their services, as well as an increase in trading volume. According to Coinmarketcap.com, the cryptocurrency market now has a total capitalization of $200 billion, which is some way short of the $260 billion a month ago but up from the $130 billion registered on the day US President Donald Trump banned international travel and the World Health Organization declared the Coronavirus a global pandemic. Exchanges including Bitfinex, Kraken, Paxful, and OKex have all reported an increase in the number of new users that have registered during the lockdown.

This increase in demand has led many Bitcoin investors to predict a bull run similar to the one experienced in 2017. At that time, Bitcoin started the year at less than $1,000 and peaked at nearly $20,000 by December. At that time, the total market capitalization was over $800 billion, so the market has a long way to go to recover those levels of demand.

Many traders are still unsure of Bitcoin’s direction in the near term. The market has experienced turbulent times in the past two months, even by cryptocurrency’s standards, matching the global uncertainty surrounding the Coronarivus Covid-19. However, the digital gold is set to experience its third halving event, in May. This event sees the mining difficulty increase and means that the reward for miners is halved. Many mining rigs and even mining farms could be forced to close their doors if the price isn’t high enough to leave some profit after mining costs.

While Bitcoin has enjoyed a revival over the past 24 hours, it is Ethereum that has posted the biggest gains of the ten largest coins. Dubbed as digital silver to Bitcoin’s digital gold, Ethereum broke the $145 resistance level that has proven stubborn of late, and this morning passed $150 too. It is currently trading at $157 having posted a near-10% increase over the past 24 hours. There is resistance at $158, which could take some breaking in the coming days.

Analysts have warned that Bitcoin needs to defend the $7,000 level, turning this stubborn resistance level into strong support, in the coming days, otherwise, we remain in a bearish situation. Investors have been warned that if Bitcoin fails to defend this level adequately, we could be looking at a fall to $5,200 and potentially lower.

At 15:15 GMT, Bitcoin (BTC) had added 4.64% to its price and is now changing hands at $7,110.68 while Ethereum (ETH) is up 8.25% at $156.03. Ripple (XRP) has also added to its price, increasing by 4.72% to cost $0.189. Bitcoin Cash (BCH) and Bitcoin SV (BSV) are now trading at $244.62 and $182.64 after adding 3.63% and 3.2% respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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