The bitcoin price may have taken a temporary respite, but the sharp correction below $ 30,000 did little to scare bullish sentiment in cryptocurrency market participants.
The CME Bitcoin futures market reached a record $ 2.7 billion on January 4, and LMAX Digital broke the record of $ 2.62 billion on the same day. This massive increase in trading activity indicates that institutional investors continue to invest in Bitcoin (BTC).
Through institutional adoption, analysts believe that Bitcoin could grow to $ 100,000 by 2021. However, analysts at JPMorgan Chase, led by Nikolaus Banjertzoglu, see a slightly different view, believing that Bitcoin’s volatility must converge with the volatility of gold to trigger. To jam outside. “Of gold.” Until then, analysts are not expecting Bitcoin to rise above $ 146,000 this year.
Although Bitcoin has taken a breather from the recent trend, there are some tokens that have not been lacking. Let’s take a look at the potential root causes of the growth and find out what technical levels you should be aware of.
LRC / USD
The price of Ether has risen in recent days, and so has the activity on the Ethereum network. This led to a significant increase in online gas payments. While high taxes may not bother the wealthy, small merchants are likely to find it difficult to place deals of lower value.
To save the higher gas fees, it appears that traders have connected Loorpring (LRC), which has seen an increase in trading volume on the decentralized exchange, as data from Dune Analytics showed the number jumped to $ 5.49 million.
Recently, Loopring Exchange v2 based on Loopring Protocol 3.6 was launched, and introduced. With the current market improving and ETH gasoline prices higher, this could not have happened at a better time.
The team also plans to launch AMM Liquidity Operations and several other programs on January 7 to accelerate implementation of zkRollup Tier 2 scalability and increase liquidity. Loopring estimates that the annual return on the first three batches of AMM can be as high as 40%.
If trading activity remains high, the Ethereum network workload may not decrease quickly, and this may work in Loopring’s favor. Let’s see how his symbol reacted to this positive primary event.
The LRC price rose from $ 0.175 on January 3 to an intraday high of $ 0.585 today, which is a 234% increase in three days. This advice pushed the RSI deeper into the overbought zone, indicating an increased risk of a lower pullback or consolidation.
Daily LRC / USDT chart. Source: TradingView
The LRC / USD is currently facing little resistance near the 200% Fibonacci extension level at $ 0.58952.
However, if the bulls continue to buy and push the price above $ 0.509, the rally may continue a 261.8% expansion at $ 0.73617 and then a 300% expansion at $ 0.82681.
In a strong uptrend, corrections are sharp and short-lived. The first support on the downside is the 38.2% Fibonacci retracement level for the last stage of the upward move to $ 0.42838.
A strong bounce from this level will indicate that traders are buying aggressively in downturns without waiting for a deeper correction, and this could improve the odds of the trend resuming.
This bullish momentum may weaken if the pair breaks through the 50% retracement level at $ 0.38.
Hijic / Dollar
In a trending market, traders feel the opportunity to make inflated profits through leverage. While futures contracts can be an attractive proposition, they also carry a risk because increased volatility or a sharp reversal can lead to large losses if measures are not taken in time to adjust or adjust the position.
At times like these, when the market is in a downturn, traders prefer to use options because they have limited risks but great potential for exercise.
Apart from this, few experienced traders also use options to hedge their future positions or spot purchases if they are in high volumes. This appears to have benefited Hegic Options Trading Protocol (HEGIC), which traded a record volume of options on January 3rd.
Token holders who do not wish to trade options can benefit from giving liquidity to a pool in Hegic and receive a reward.