Bitcoin, the world’s top cryptocurrency by market cap, is trading at $21,663, up about 10% over the past week and up 6% on Thursday alone, according to CoinMarketCap data. Similarly, Ethereum has also seen notable gains, up to $1,238 or 7% on Thursday and 19% over the past seven days.
The rest of the cryptocurrency market appears to be following suit Solana up 4%, Polkadot up 5%, Cardano up about 3% and Dogecoins up 3.% in the last 24 hours.
Blockware analyst Joe Burnett has some thoughts on what could happen. He cited Bitcoin’s correlation with the NASDAQ — which is up 5% over the past five days — as well as recent sell-offs by bankrupt firms such as Capital with three arrows Creation of a “local soil”.
“These forced sales definitely helped set at least a local floor from which the price could rise,” Burnett said decrypt via Twitter DM.
In his view, the Bitcoin mining industry is also affecting the price of the cryptocurrency.
“We have been in a miner capitulation for 30 days (according to hash band metric) and there are signs that it may end soon if the price stops falling,” Burnett said. “Miner capitulation increases near-term selling pressure as miners liquidate their BTC treasuries to continue operations.”
The ongoing crypto winter has seen cryptocurrencies go to zeromultiple companies file for bankruptcya wave of redundanciesand a liquidity crisis. Does this sudden surge mean market fears are easing?
Kraken’s Dan Held seems to think so, arguing that the “mass contagion” of an ongoing domino effect — where one crypto company’s failure affects another — has been “contained” by FTX, an exchange whose CEO says he still does billion dollars to use if necessary for ailing crypto companies.
Was this the bottom for Bitcoin?
– Mass Contagion feels contained with FTX – Celsius repays its BTC loan – Bankruptcies already filed – Inflation fears cooling off
Others are less sure. Will Clemente, bitcoin analyst at mining company Blockware, pointed to bitcoins 200 week moving average (WMA) of $22,520 as a key metric. If the price of Bitcoin stays below this level, the price decline could continue.
“The response at 200 WMA should be pretty telling,” said Clement.
The response at 200 WMA should be pretty telling.
A reclaim of that essentially putting everything under a divergence would be a nice swing long setup for traders and likely trigger some trend algos. A cancellation would be no bueno. pic.twitter.com/6DRvWqMMeN