With Bitcoin (BTC, Tech/Adoption Grade “A-”) holding near $57,000, altcoin season is back in full effect after yesterday’s brief interlude.
• Ethereum (ETH, Tech/Adoption Grade “A-”) dipped below $2,000 yesterday but has reclaimed that level as strong support.
• Binance Coin (BNB, Tech/Adoption Grade “C-”) has ripped to new highs yet again, as CZ’s crypto mega company picks up popularity.
• Polkadot (DOT, Tech/Adoption Grade “C”) has bounced back above the $40 resistance level after dipping to $38 yesterday.
Ethereum dropped a bit yesterday and closed right around $1,960 but has since bounced back to reclaim support above $2,000. The world’s No. 2 cryptocurrency is up more than 4% today.
This is encouraging action because it’s a sign there’s strong purchasing volume above $2,000. Ethereum is establishing a base for its next leg higher. A run past previous all-time highs in the near future looks increasingly likely.
Here’s ETH in U.S. dollar terms via Coinbase:
After blasting off an early year rally to $360 by Feb. 19, Binance Coin retreated to about $200. It rode the line of its 21-day moving average for more than a month before skyrocketing again, reaching $418 today. In fact, BNB is up 80% during the last two weeks alone.
It seemed for a while that the BNB bubble had popped after that amazing run to start 2021, but this week it’s as strong as ever. Binance Smart Chain (BSC) has started to pick up steam and adoption as users have turned to it to avoid the high fees on Ethereum based-DeFi protocols lately. The question yet to be answered is whether users will permanently make the shift from the original smart contracts platform to the more centralized BSC.
Here’s BNB in U.S. dollar terms via Binance:
Polkadot is back above $40 on a good bounce today after a brief dip below that level yesterday. It hit a high near $48 last week, and analysts have been calling for much higher highs to come in the near future.
DOT held its moving average during yesterday’s big dip, which gives hope that this bull move won’t be ending any time soon. The next important step is to set some continuous closes above $40 and establish a base from which to test new all-time highs.
Here’s DOT in U.S. dollar terms via Binance:
Notable News, Notes and Tweets
• There are many things to look forward to during this bull run for Bitcoin.
• State Street Corp. (NYSE: STT), the second oldest continually operating bank in the U.S., announced it will support a system for its institutional clients to trade crypto, and that’s pretty bullish.
• Crypto is putting more and more names on famous lists of billionaires.
What’s Next
Days like today are even more special when they happen right after a dip like what we experienced yesterday. That’s an encouraging dynamic when one day the market regresses slightly and tests support and the next it bounces back.
Having passed those tests, many coins are now establishing new bases for their next legs up in this bull run.
Things are looking particularly healthy on the Ethereum chart, as the No. 2 cryptocurrency appears to be setting a new base at $2,000 and readying for a push to new highs. ETH typically carries the rest of the altcoin market behind it, so all eyes should be on the King of Smart Contracts today and the rest of this week.
Exciting times lie ahead.
Best,
Alex
