Cryptocurrency Market in Recovery Mode as Bitcoin, ERC-20 Tokens Lead
Cryptocurrency prices were trekking higher on Saturday, as bitcoin and a slew of Ethereum-based tokens booked solid gains following a week of mostly lateral moves.
Bitcoin in the Lead
Bitcoin continues to be the market’s major driving force. The leading digital currency by market cap and trade volume reached a high of $6,799.70 on Bitfinex, its highest since Tuesday. At the time of writing, BTC was valued at $6,719.80 for a total market value of $116.2 billion.
An evaluation of the technical charts shows strong momentum for the bitcoin price. The relative strength index has pushed above 60 while the MACD – a key indicator of price action – is firmly in positive territory.
Bitcoin’s next major hurdle is the 200-period moving average, which currently resides just above $7,000.
Forty-two of the top-50 Ethereum-based tokens traded in positive territory on Saturday, with the likes of VeChain (VEN), ICON (ICX) and Aion (AION) posting double-digit percentage gains. Major assets, such as Ethereum, bitcoin cash and EOS, rose betwen 2.1% and 3.6%.
The combined value of altcoins and tokens reached $101 billion for a gain of nearly 4%, according to CoinMarketCap.
Despite the gains, cryptocurrencies other than bitcoin account for just 46.5% of the total market. Major assets have seen their market share eroded in recent months as traders cut speculative bets on ERC-20 tokens. As Hacked previously reported, a large-scale cash-out of initial coin offerings has been partially responsible for the decline.
Google Searches for ‘Bitcoin Price’ Approaches 13-Month Low
Mainstream interest in bitcoin’s price has declined to its lowest level in over a year, according to Google search trends.
Worldwide searches for ‘bitcoin price’ received a Google trend score of 9 out of a possible 100 in the latest week. Successive trend scores haven’t been this low since the summer of 2017, a sign that retail interest in digital currency was declining. For comparison, the search term ‘bitcoin price’ peaked at 100 during the height of the bull market back in December.
In the chart above, the ‘Note’ refers to data improvement methodologies applied by Google beginning on Jan. 1, 2016.
Searches for ‘cryptocurrency’ don’t fare much better; the term currently has a rank score of 11 out of a possible 100. That’s the lowest level in over a year.
On the scale of 1-100, higher scores represent greater interest in a particular search term.
Google searches are an indirect measure of investor interest in cryptocurrencies. Declining searches are a strong indicator that retail traders and first-time buyers have been largely absent from the market amid the downturn. Exchanges such as Coinbase have picked up on this trend, and are putting more resources into developing custody services to lure institutional capital.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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