Bitcoin price weekly analysis: Increasing confidence
With a 38% week-on-week rise, bitcoin seems to be going from strength to strength.
The price of bitcoin will be all the talk at the office this week again as it has well and truly pushed over the psychological barrier of US$10,000. The question will be whether the gains of this week can be defended going forward.
Total market dominance has increased again this week. Two weeks straight that figure has climbed and this week by more than 2%. That seems to be at the cost of Ethereum market dominance which has decreased by a larger amount over the same time. Needless to say, there seems to have been significant market confidence in bitcoin over the last two weeks.
Lightning Network could be adding to this as the underlying technology for bitcoin continues to show stronger fundamentals. 755 nodes are now operational on Mainnet. The results of that could lead to significantly lower transaction fees, much faster transaction times and it is becoming clearer that the Lightning Network may also provide higher levels of privacy for users.
Bitcoin started the week promisingly at US$8,175.48 and did not go below that number over the week. A midweek trading surge saw bitcoin lift to US$9,981.60 and the highs were not limited there.
Almost like a tide whose time had come, bitcoin continued the surge and found its peak at US$11,335 late in the trading week, representing a 38.64% increase week-on-week.
The price cooled off somewhat, retreating to more a solid footing at US$10,375.70 as the market readjusted.
Market cap moved largely in line with price fluctuations, starting the week at US$137.82 billion. The midweek high showed a bulge in market cap exposing a premature US$168.34 billion, though the strong movement was not arrested there.
Market cap went on to reach US$191.23 billion by late in the trading week. It had calmed its vigour as the week was drawing to a close, showing an impressive US$175.1 billion market capitalisation.
In terms of total cryptocurrency market domination, bitcoin has performed like a champion again this week. Moving from 34.72% of the entire cryptocurrency market’s value at its lowest and at its highest, bitcoin’s total market domination moved to 36.86%, suggesting it may have strong market sentiment behind it.
This week has once again seen strong and consistent 24-hour trading volumes in bitcoin.
This market demand had its peak during midweek trading and again as the weekend was drawing near. Those periods registered US$9.14 billion and US$9.29 billion as the price of bitcoin rallied hardest.
Aside from those large runs trading volume was consistent, beginning the week at US$7.07 billion and hardly dropping below US$6 billion throughout the remainder of the week.
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