Bitcoin price jumps 21% in 24 hours, trades above $24k
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The U.S. government’s intervention to stop the financial contagion has improved the state of the cryptocurrency market significantly since Friday. Some traders have even declared the end of quantitative tightening (QT) and a return to cheap money policies as a result of the action.
Less of a rebound occurred in the stock market; initially rising when President Biden offered an emergency backup for bank accounts in trouble, the impetus waned during the day. The Nasdaq managed to gain 0.45% at market close, but the S&P and Dow closed lower, down 0.15% and 0.28%, respectively.
The price of Bitcoin (BTC), which had been hovering around $20,300 for much of the weekend, started to rise on Sunday afternoon, according to data from TradingView and received a further lift from the emergency statement on Monday. This is a reversal of 21.2% in less than 24 hours.
According to Jim Wyckoff, senior technical analyst at Kitco, the quick turnaround resulted in a significant increase in March Bitcoin futures.
Bears continue to have a minor technical advantage in the near term, Wyckoff added, noting that the daily bar chart still shows a price downturn. Bulls are gaining traction, and more price advances this week would reverse the downward trend in prices.
Although recent price changes in Bitcoin appeared random and subject to the whims of market participants, a closer examination of the chart reveals that, in the words of analysts at Eight Global, “daily candle closes were all in the support region we had marked at $20,077 – 20,665”. “The correction on BTC came to an end at the 200-DMA [Daily moving average]/ 0.236 fib retracement level.”
According to Eight Global, the price of Bitcoin “bounced back all the way towards the 50-DMA found near $22,900” when the U.S. government intervened to stop a financial crisis from spreading. The current daily timeframe’s immediate locations to look for support are between $21,500 and $21,800, while potential resistance is between $22,600 and $23,000.
The primary scenario that the experts are now focusing on is an ABC correction, with the B wave top’s most likely location between $23,300 and $24,000, then another decline in the direction of $18,300. A flip to support of $24,000 might render this scenario invalid.
BTC is now trading at just over $24,000, but a convincing daily close above this mark is required before a resistance level can be judged to have turned into support.
According to Eight Global, the weekly candle on the weekly Bitcoin chart ended below the 8EMA (exponential moving average) after losing the 34EMA the previous week.
In previous weeks, “both the weekly 200EMA and 50EMA have behaved as resistance,” the analysts noted. All things considered, this is not surprising considering that they were tested for the first time since March of last year. But, it is noteworthy that there is a lack of relative strength when the weekly 8EMA is above us. To be mindful of when searching for long-term entries.
Green across the altcoin market
The only tokens in the top 200 displaying red for the day are stablecoins, which have been heavily discounted by traders re-entering the cryptocurrency market. The altcoin market is a sea of green right now.
The 24-hour chart now shows Conflux (CFX) up the most, up 58.89% and trading at $0.24, followed by Synthetix (SNX), up 33.46%, and Blur, up 31.57%. (BLUR).
The market capitalization of all cryptocurrencies is currently $1.072 trillion, and Bitcoin has a 43.6% market share.
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