In the last 24 hours, the digital asset has accumulated increases of almost 3%, as has Ethereum, which is looking for $3,100, after also chaining three bullish sessions. The first and second cryptocurrencies of the market leave profits in the last seven days of 15% and 23%, respectively, while in the rest of the altcoins, they also remain on the rise.
The bullish cycle happened on Friday, when Bitcoin managed to break above the $40,000 area, a price level that had been a major support throughout the previous bullish phase and had now become a control zone. However, according to data compiled by Coindesk, bitcoin trading volume on major centralized exchanges over the weekend was down significantly from Friday, but has been in line with most days of the past week, when it was reduced, as the major cryptocurrency markets in Asia were closed for the Lunar New Year holidays.
On the other hand, the digital currency remained above $37,000 over the weekend, signaling a recovery phase. Even so, the price is unlikely to rise significantly if the negative momentum signals on the monthly chart are confirmed. And this Monday, it has surpassed its 50-day moving average for the first time in more than two months.
Upside momentum is improving after technical indicators hit the most oversold levels since March 2020. Buyers will need the decisive move above $40,000 to be just confirmed to reverse the price’s bearish trend since November’s high around $69,000. In recent months, brief rallies have been capped below resistance levels, meaning sellers have been in control.
In the short term, however, bitcoin could see additional upside., especially as the Relative Strength Index (RSI) is not overbought on the daily chart. The next resistance level is around $45,000, which could stop the current rally. Above that, other pundits suggest that the buying has the potential to push the price into the $46,000-$47,000 zone.
The correlation with the technological
The short-term uptrend in the queen of cryptos kicked off on Friday following the better-than-expected US jobs report and strong results from Amazon. Cryptocurrency has been correlated with risky assets in recent months as it is perceived this way by traditional asset managers.
Previously, cryptocurrency prices were under pressure due to growth, and risk assets were under fire due to anticipated interest rate hikes from central banks. Additionally, Facebook’s earnings report dented investor sentiment. However, “cryptocurrency traders turned bullish following Amazon’s better-than-expected earnings report, as did Google, Apple, and Microsoft. Positive earnings from these companies helped rekindle investors’ risk appetite.” investors and helped push cryptocurrency prices higher,” concluded Naeem Aslam, Head of Research at Avatrade.
Source: Ambito
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