The cryptocurrency market has been recovering nicely since last night, after the significant price drops this week. This is partly due to Evergrande having struck a deal with its bondholders that restored calm to the stock market (for now).
What may also play a role is the announcement of the US central bank, the Federal Reserve (Fed). The Fed reports that it may start phasing out bond buying in mid-2022, but will continue to do so until then.
Mostly altcoins colors strong green this morning. Despite this, most crypto is still about 10% or more in the red compared to a week ago. Total market capitalization dipped to about $1.85 trillion this week but is back at $2.08 trillion this morning.
Bitcoin
Bitcoin (BTC) fell just as hard this week. The price was still around $48,000 on Sunday and dipped below $40,000 yesterday. Bitcoin then made another bounce up and the price was able to find support at $42,000. Towards the evening, bitcoin broke out shortly after the above news, and the price jumped right past $43,000.
Bitcoin initially encountered a lot of resistance around USD 43,600, but in the early hours of this morning, bitcoin was able to push through. Bitcoin recaptured $44,000 again and briefly peaked at $44,600 this morning. If bitcoin holds up here, we may see the rate this week the 200 days moving average (MA) back around $46,000. That would probably bring back a lot of confidence.
Anyway, the data remains very there bullish look for the BTC rate. Bitcoin Miners, Whales and Older Investors Continue to Accumulate:
Overall, the Mean Coin Age and Miner Reserves helps identify the trend and activity of important holders of #BTC. The strong trend in accumulation of LTHs and Miners continuing to maintain reserves is a very bullish signal for #Bitcoin.
— Daniel Joe (@DanielJoe916) September 23, 2021
Meanwhile, the Lightning Network also processes more transactions than ever:
the #Bitcoin Lightning Network is currently at an all-time-high capacity of 2,738 $BTC, equivalent to $116.3M in value.
We are pleased to launch LN metrics to Glassnode Studio⚡️
– Total capacity
– Mean / Median channel size
– LN Node and channel countshttps://t.co/2zrfglOliP pic.twitter.com/do4zUBT5FD— glassnode (@glassnode) September 22, 2021
altcoins
Altcoins are generally gaining stronger than bitcoin in the past 20 hours. Ethereum (ETH) briefly dipped to USD 2,700 yesterday morning and then recovered towards USD 2,900. Towards evening, the ether price jumps up to $3,050. Then, ether continued to climb steadily overnight, reaching USD 3,150 this morning.
Cardano (ADA) pulls even harder. The ADA price dropped slightly below $2 on Wednesday night, but is now at $2.28 this morning. Polkadot (DOT) and solana (SOL) are currently rising fastest among the top 10 largest cryptos. DOT is up 11% and is now pushing against resistance around USD 32. SOL is even up 12% and is now pushing towards $150.
Just outside the top 10 we see a handful of prices rising even more strongly. Avalanche (AVAX), now in 11th place, is up 21% today and comes in at $78. Cosmos (ATOM), now in 14th place, is up 22% and comes in at $41.5. Terra (LUNA), now in 12th place, is up a staggering 25% last night to $34.6. Even faster, arweave (AR), which is up 29% and closes in around $52.