Tesla got the market excited briefly, but bitcoin remains in possession mode.
Bitcoin (BTC) trading around $54,771.18 as of 20:00 UTC (4 pm ET). Slipping 0.63% within the previous 24 hours.
Bitcoin’s 24-hour range: $53,577.33-$57,225.30 (CoinDesk 20)
BTC trades under its 10-hour and 50-hour averages on the hourly graph, a bearish signal for market technicians.
The”Elon Candle” effect on bitcoin is apparently short-lived.
The market jumped early Wednesday following Tesla CEO Elon Musk declared the electric car maker plans to currently accept bitcoin as a payment option, and that it will not convert any receipts of the cryptocurrency back into U.S. dollars.
On the U.S.-based Coinbase market, bitcoin’s price temporarily shot above $57,000, compared with the prior day’s $54,400. The response remembered the activity on Feb. 8 when prices jumped more than $7,000 — the most ever for a single day — later Musk tweeted that Tesla had bought $1.5 billion value of bitcoin. Dealers and T-shirt entrepreneurs nicknamed the incident”Elon’s Candle,” following the corresponding vertical shape created on a daily price chart.
But this time around, the market could not hold onto the gains. At press time, the oldest cryptocurrency was changing hands at $54,599.71, down 0.50percent in the previous 24 hours.
“Bitcoin obtained a tiny bullish bump” from Tesla’s latest news, said Jason Lau, chief operating officer at San Francisco-based crypto market OKCoin. “However, bitcoin is still in consolidation style as traders are still digesting these levels.”
In conventional markets, the dollar index (DXY) rallied to four-month highs Tuesday, and returns on the 10-year U.S. Treasury note dipped marginally to 1.62%, down from last week’s one-year high above 1.7%.
The bitcoin marketplace, meanwhile, is currently at a”wait-and-see” manner,” Lau said.
Such reluctance is also evident from the bitcoin derivatives market, in which the open interest on futures contracts has remained relatively steady since it attained an all-time large on March 13.
Ether drops again, Ethereum community looks to speed Eth 2.0 transition
Ether (ETH) was down on Wednesday, trading about $1,637.26 and slipping 4.38% in 24 hours of 20:00 UTC (4:00 p.m. ET).
The No. 2 cryptocurrency by market capitalization has declined for the fifth straight day, into the lowest point in two weeks. It briefly spiked with bitcoin after Musks’ tweet, to as large as $1,740.58. However, as with bitcoin, the profits dissipated quickly, according to CoinDesk 20.
Ether”has stalled below final immunity from February, a minor barrier to fresh all-time highs, after showing signs of fatigue,” Katie Stockton, a technical analyst for Fairlead Strategies, wrote in an email to CoinDesk.
The Ethereum developer community has began spitballing possible dates for speeding up the blockchain system’s transition to a proof-of-stake consensus mechanics, as CoinDesk’s Valid Points Magazine reported earlier Wednesday.
Some members voiced worries that prospective Ethereum Improvement Proposals (EIPs) would likely decline as more developers focus on”the Merge” into Eth 2.0 once it’s approved.
Digital resources on the CoinDesk 20 are for the most part in red Wednesday. The notable winner at 20:00 UTC (4:00 p.m. ET):
Tezos (XTZ) + 3.98%
Xrp (XRP) – 5.53percent
orchid (OXT) – 5.11%
chainlink (LINK) – 4.84%
kyber system (KNC) – 4.78%
cosmos (ATOM) – 3.78%
The S&P 500 in the USA shut down 0.55%.
Oil was up 5.18 percent.
Gold has been in the green 0.38percent and at $1733.81 as of press time.
The 10-year U.S. Treasury bond yield dropped Wednesday dipping to 1.615 percent.