Bitcoin
Could It Happen Again? By U.Today
U.Today – could see another impressive surge as the market sees a rise in a key technical indicator. Apart from that, there are few factors that could bolster the value of digital gold.
We saw a significant market rotation yesterday: the Index (IWM) rose by over 3%, while the Nasdaq fell by over 2%. A similar rotation signaled the start of a massive rally in Bitcoin and altcoins in November 2020, and this shift suggests a move towards riskier assets.
The total altcoin market cap increased by 400% in the four months following the IWM surge at the time. There is reason to believe that something like this could happen again. There are a number of indicators that suggest that the cryptocurrency market, including Bitcoin, may be trending positively.
It appears from recent data that Bitcoin miners who were liquidating their holdings are starting to give in. It is possible that a price recovery will be facilitated by this easing of selling pressure and downward momentum. Germany has been the biggest seller of Bitcoin in recent days, and it seems that they are finally done with that.
Bitcoin’s price trend appears to be reversing, according to a number of mean reversion indicators. These indicators, which measure the deviation of Bitcoin’s price from its historical average, imply that the current undervaluation could eventually correct itself, resulting in higher prices.
Furthermore, encouraging signs can be seen on the technical side of the Bitcoin price chart. After recently bouncing off the 200 EMA support level at $58,201, the Bitcoin price is currently trading at around $60,265. The next resistance levels to watch are the 50 EMA and the 100 EMA. If these levels are broken above, it could validate an uptrend and pave the way for another significant rally.