Full Crypto Recovery

Bitcoin jumped 8.5% to $23,300 on Tuesday, posting a 20.8% gain over the past seven days. Ethereum is trading around $1570 on Wednesday morning, adding 3.4% in 24 hours and an impressive 49% for the week.

Top altcoins are also rising well, adding between 3.9% (Polygon) and 11% (Cardano) for the day. The total crypto market cap, according to CoinMarketCap, rose 4.7% overnight to $1.067 billion. Bitcoin posted its highest gains in a month on Tuesday thanks to a rebound in US stock indices and a weaker dollar.

BTC has been testing highs since June 13 near $23,700, and on Wednesday it is trying to consolidate above its 50-day moving average. The momentum near this line has often acted as a reliable mid-term trend indicator.

Only a strong buy above this level can serve as an indicator of a firm reversal in the next few days. If the bullish momentum stops, as it did in February and March of this year, we should be bracing for a big uptick in selling. BTCUSD also broke above the 200-week average during the latest wave of growth, but a fixation above this level at the end of the week should be considered a reliable signal.

The cryptocurrency’s Fear & Greed Index climbed to 31 on Wednesday after more than two months in “extreme fear” territory. After waves of capitulation in May-June 2022, bitcoin prices have been below the realized price for a month now. Other signals of a potential bottom formation also emerged, Glassnode notes. CryptoQuant, the research firm, has warned investors that further selling of BTC miners in a falling market could lead to price pressure.

This article was written by Alex Kuptsikevich, Senior Market Analyst at FxPro.

This article was written by FxPro FXPro at www.forexlive.com.


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