Bitcoin has recovered some of its recent losses with prices up around $36,000.
“Bitcoin gained 10% in the past 24 hours to trade above $36,500 during European hours on Tuesday, staging a recovery after a plunge on Monday saw prices fall to as low as $33,500,” writes Shaurya Malwa at Coindesk this morning, as BTC fights to correct a 10% downturn over the last week. “The move caused a resurgence in the broader crypto market, adding 5% to the $1.7 trillion total market capitalization in the past 24 hours. Several major cryptocurrencies rose as high as 12%, with Polkadot (DOT), Solana (SOL), and Cardano (ADA) being among the biggest gainers.”
Some of the big winners that Malwa mentions have their roles in new defi processes like crypto lending and staking.
Meanwhile, on BTC, Malwa talks about the RSI and how that works:
“Readings from the Relative Strength Index (RSI), a price-chart indicator, for bitcoin hovered at the 50 mark during European hours on Tuesday, recovering from oversold levels of under 30 on Sunday,” Malwa writes. “RSI calculates the magnitude of price movements for assets, with readings below 30 indicating prices of an asset have fallen further than its fundamental value.”
Malwa also quotes Marcus Sotiriou, an analyst at crypto broker GlobalBlock, as indicating a different kind of trajectory context for BTC locally.
“The determination of a bull/bear market is not as clear as previous cycles, due to the structure of the market changing drastically with institutions entering the space,” Sotiriou says. “It is apparent that Bitcoin is in a ranging environment (between $29,000 to $69,000 approximately) rather than a trending environment.”
To be sure, a lot of the BTC actuion is about Fed moves.
There will be quite a bit of Fed/FOMC volatility in Bitcoin’s activity, according to William Suberg.
“Rate hikes are planned to be the follow-on from the Fed’s asset purchase tapering, with Bitcoin sentiment taking a hit in advance as the end of ‘easy’ liquidity nears,” Suberg writes at Cointelegraph today. “Asset purchases should conclude by March, however, and the Fed has said that the rate hikes should not come before then.”
As crypto traders, it behooves us to follow this closely.
