The stock’s gain of more than 11% on Friday was the biggest one-day rally for bitcoin since mid-June, and the first major rebound after weeks in which it, along with growth and technology stocks, rallied. have been affected by fears that the Federal Reserve will raise interest rates faster than expected to curb rising inflation.
It came alongside a rally in US stocks, with the tech-heavy Nasdaq ending the week with gains despite strong volatility in corporate earnings, including strong growth from Amazon and disappointing results from Meta Platforms Inc. , owner of Facebook.
Those synchronized moves showed bitcoin becoming a much more mainstream asset, rocked by swings in risk appetite.
Cautious?
Amid the new strength, the mood was noticeably more optimistic than it had been in recent days or even weeks. Popular analyst Credible Crypto compared the current action to Q4 2020, in which Bitcoin challenged $12,000 before breaking three-year all-time highs.
“The only good bear is a dead bear,” trader and analyst Pentoshi said on his Twitter account as the market continued to rally to local highs of $42,000. Others were less convinced of the sustainability of the current move, with data showing a sizable high-volume sales start when $40,000 resurfaced.
“It’s probably worth mentioning that price is at historic on-chain bid/offer oversold levels, and futures traders have stopped selling,” statistician Willy Woo commented as he compared similar RSI breakouts.
As for sentiment, the sense of caution that has characterized the market since the peak of $69,000 in November remained. According to the Crypto Fear & Greed Index, “fear” was still the predominant emotion among market participants, even after the price jump.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
