Growth of rates: how bitcoin and Elon Musk changed the situation in the crypto market

After a two-week pause, when the rates of most cryptocurrencies were declining, the crypto market began to rise. At the same time, each individual coin had its own growth catalysts.


The past week from February 10 to 17 was positive for BTC fans. Over this period of time, historically, the first cryptocurrency added more than 10% in price.. On February 16, Bitcoin even traded above the psychologically important mark of $25,000 for some time, but could not stay there.. It later fell below $24,000. Now BTC is trading near the level of $23,800 (at the time of writing).


What was the driver of growth after two weeks of calm in the market? There was no news that would shock the cryptocurrency world. Here we can rather agree with the founder and CEO of Pixelmatic, Samson Mow, who wrote the following on social networks:

“Analysts and media experts will talk about bitcoin, attributing its growth to some specific reason.. There is no other reason than that bitcoin is bitcoin. It is made to contain all the monetary value in the world.”

In the end, the rise or fall in the price of any asset is determined only by the desire of people to buy or sell it.. Another thing is that there are some factors urging investors to make certain decisions.

In this case, two factors could play: one fundamental, the second technical. The first is that the US inflation data in February did not surprise anyone and was largely predictable.. The consumer price index of 6.4% was the lowest since October 2021. True, it is still extremely far from the Fed's 2% target.. Which, by the way, raises concerns of a number of experts.

For example, Michael Novogratz is worried that the actions of the head of the US Federal Reserve, Jerome Powell, will not allow bitcoin to grow normally.. At the same time, the businessman believes, by the end of March the price of BTC will still reach $30,000.

The technical factor is more of a medium-term uptrend. Although a couple of weeks in early February were negative for BTC, the overall upward trend has not changed.. In any case, the opinions of experts differ on this thesis.

A German trader under the nickname DonAlt does not see the prerequisites for excitement until the price of bitcoin drops to the $19,000 region. But the well-known analyst Benjamin Cowen drew the attention of the cryptocurrency community to the appearance of a “death cross” on the weekly chart – the 200-week moving average crossed the 50-week moving average from the bottom up.

Is it so? Yes, you can see this in the figure below, where the 50-week moving average is marked with a red line, and the 200-week moving average with a blue one.


Who is right here? Only time will give the final answer.. If you look at the medium term, then so far there are really few reasons for excitement.. The 200-week moving average covers a period of almost four years, while the 50-week moving average per year. This applies to medium-term investment with a stretch.

Now the coin has tested the resistance level of $25,200, and before that it did not fall below the support level of $21,473. If the latter does happen, then you should think about closing positions.


The index of fear and greed moved from neutral status to the zone of greed in a week. Its value is 61.


Ethereum showed a growth of 9.41% over the past week: slightly less than bitcoin. The largest increase in price was observed on Wednesday, February 15, when the coin rose by 7.63%. On February 16, Ethereum traded above $1,700, but fell in the evening.


The main driver of the future growth of the coin may be its declared deflationary nature. Over 25,000 ETH has been burned since the merger. If we count at current prices, then this is equivalent to an amount exceeding $ 42 million.. It is logical to assume that since the supply of cryptocurrency is reduced, then it can rise in price.. At least until the Shanghai fork.


By the way, in anticipation of this fork, tests continue in the Zhejiang subnet. In the past week, a flaw was discovered in the synchronization of the Proof-of-Stake client Prysm with the Besu client, designed for allowed use cases. Ethereum Foundation spokesman Tim Beiko assured that the problem will be fixed and will not affect the timing of updates in the near future.

In terms of technical analysis, Ethereum was able to rebound from the support level at $1,501.16 and again storm the resistance level at $1,676.8. If we manage to gain a foothold higher, we can expect the continuation of the trend.


Dogecoin added 6.8% in a week. In terms of numbers, this is comparable to BTC and Ethereum, but the situation is somewhat different.. If the two largest cryptocurrencies in the world are in the region of local highs, then Dogecoin is quite far from them.


The basis of all the gestures of the meme cryptocurrency, as in the past, are the statements of Elon Musk. This week was no exception, when the billionaire tweeted that the best CEO for the social network would be his dog Floki.

From the point of view of technical analysis, the nearest resistance level is $0.0919, and the support level is $0.0788.


In general, the week was not bad for crypto investors: almost all coins rose in price. However, at the maximum values of February 16 on Thursday, none of them could hold out.

This material and the information in it does not constitute individual or other investment advice.. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.