- Bitcoin’s price has presented signs of extending the recovery to the $35,000 mark.
- Ethereum still presents a high BTC correlation.
- With volatility still high, altcoins could face hurdles going forward.
After the recent flash crash, the top crypto asset found a solid support at the $29,100 price level. Bitcoin price has been coiling up around the range of $29,000 – $30,000 for quite some time.
On Monday, BTC price started on a high note, rising to as high as $31,350. While technicals point towards range formation, indicating that an up move is likely in the coming days, the larger sentiment around cryptos remains ‘Extreme Fear.’
Bitcoin price presenting bullish signs?
BTC bulls are making attempts at recovery from the under $30,000 zone. This time, a strong comeback (if at all it happens) would be a testament to the bulls’ power and could determine bitcoin’s price path going forward.
Last week saw one of the most significant price losses in the history of the cryptocurrency market as BTC almost tested the $25,000 mark. BTC’s price was up by nearly 15% from last week’s price lows.
The top coin’s price still moved in the tight price channel of $29,050 – $31,250.A strong push from bulls would be needed to fuel buying pressure in the market over the coming days.
Notably, bitcoin’s RSI on a daily chart was still in the oversold zone, a recovery above the oversold mark could indicate some sustained positive momentum for the top coin.
Additionally, with Bollinger bands on BTC’s 24-hour chart looking wide open, the market participants should expect high volatility going forward.
While BTC’s recent price lows have been swept at the moment, a significant price uptick seems unlikely in the short term due to the coincidence of Monday’s high and weekly open at the $31,268 price level.
Investors and traders could be cautious of a pullback towards Monday’s low at $29,027 and contemplate going long BTC. However, if bulls can push BTC price higher and flip Monday’s high at $31,250, the same would reveal a stronger conviction amongst buyers suggesting the likelihood of a short-term rally.
In case of a near-term uptrend, Bitcoin price could first retest the range high at $32,650. Once that is cleared, the next major resistance would fall at the $34,750 level.
After the $34,750 level is breached and BTC’s price is above the psychological support at the $35,000, more volatility and pressure from bears could be expected.
Institutions running the show?
Just last week, bitcoin and the larger cryptocurrency market fell as the Terra ecosystem collapsed. Bitcoin plummeted to under $30,000; however, institutional players took advantage of the circumstance, buying into BTC at a discounted price.
According to a CoinShares report, institutions invested $300 million into exchange-traded bitcoin funds last week. The previous week recorded record weekly crypto inflows for the year 2022, while the net weekly inflows were $274 million during the last week.
Additionally, it was noted that North American investors pumped $312 million into cryptocurrency while European investors saw a $38 million net outflow last week.
The head of research at CoinShares, James Butterfill, spoke about the unprecedented volume of bullish investments in bitcoin funds despite increased market volatility. He said,
“It’s the highest weekly total since October 2021, and the 19th highest since records began in 2015.”
Can altcoins gain strength?
On BTC’s renewed short-term momentum, ether’s price saw a minor 2.5% price rise over the last day. ETH’s price had finally stabilized above the $1,980 support level, and while it can retest the $2,200 resistance, the same wouldn’t be possible without BTC’s bullish moves.
On the other hand, bearish momentum in BTC’s price trajectory could pull ETH back to the $1945 support.
Kava (KAVA) traded at $2.58 and was up by 11.06% in the last 24-hours while Elrond (EGLD) was up by 9.68% and oscillated at $100.03. That said, Litecoin (LTC) was up by 7.11% and traded at $71.28, at the time of writing.
Alogrand’s ALGO, Ripple XRP, and Solana’s token SOL were up by 6.84%, 3%, and 4%, respectively, over the last 24-hours but still traded below key resistance marks.
Some altcoins seemed to make notable gains, but sustained gains don’t seem to be on altcoins’ cards due to high volatility.
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