The A to Z of what Bitcoin’s ‘recovery’ is suggesting
After the market witnessed mayhem in early January, the crypto-verse is now on the path to recovery. The global cryptocurrency market cap recovered by 2.5% in the last 24 hours. This, while Bitcoin’s dominance remains under 40% on CoinGecko.However, reversing its last week’s slide, BTC managed to gain by 12% over the past week to trade near $42,500, at the time of writing.
Marcus Sotiriou, an analyst at the UK-based digital asset broker GlobalBlock explained that among broader positive sentiments, there has been a bounce in the crypto-markets as well. He explained,
“Sentiment around the crypto market has dramatically improved over the weekend as Bitcoin has also broken out of a downtrend on the RSI dating back to October – Bitcoin broke out of two similar downtrends on the RSI within the past year, which both resulted in incredible rallies, hence potentially foreshadowing a Bitcoin rally to the upside.”
As per the market charts, the Relative Strength Index (RSI) touched oversold levels on 8 January. Soon after, the momentum indicator went under the horizontal 30 reference level before a trend reversal was seen. The RSI has been above the 50 reference level since then, keeping the sentiments bullish.
Source: TradingView
Having said that, the GlobalBlock analyst believes that if Bitcoin’s rally continues, it will see strong resistance at $44,000-$45,000. This, on the back of continued uncertainty in the stock market.
With respect to altcoins, Sotiriou also commented,
“Altcoins have reacted tremendously and are set for a green week ahead.”
The positive sentiments are also seen in the digital asset inflows for the second straight week. CoinShares‘ digital asset investment products saw inflows totalling $19 million last week ending
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