Bitcoin price and other cryptocurrencies have recovered, reversing losses from a few days ago
Bitcoin price and other cryptocurrencies have recovered, reversing losses from a few days ago. At the time of writing, BTC is changing hands at $41,502.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price today increased sharply, the market was covered in green
Since the end of last year, there has been a continuing trend that even a slowdown in Bitcoin will be enough for altcoins to return to growth and outperform the leading cryptocurrency.
Technical indicators point to the additional upside for Bitcoin if buyers can sustain support above $37,000 by the end of the week. Furthermore, a decisive move above $40,000 could signal the start of a recovery phase.
Currently, traders are closely watching the nearby resistance levels in BTC and ETH. The continued increase in trading volume over the weekend could encourage more buying activity.
Bitcoin dipped briefly after the U.S. Labor Department reported unexpectedly strong jobs growth in January, along with big upward revisions to the figures previously reported for 2021. Theoretically, such a report would be negative for Bitcoin because the Federal Reserve might need to move more aggressively in hiking interest rates to keep the labor market from overheating. In general, Bitcoin price has responded negatively to tighter monetary policy.
Bitcoin has stabilized despite rising inflationary pressures that continue to push global bond yields higher. The 10-year Treasury yield broke above a two-week-long range of 1.92%. And the U.S. dollar also ticked higher over the past two hours, while stocks are roughly flat. Bitcoin often trades in sync with stocks.
Buyers were active over the past 24 hours as the cryptocurrency topped $40,000 for the first time in two weeks. Upside momentum is improving after technical indicators reached the most oversold levels since March 2020. They will need to make a decisive move above $40,000 to reverse the price downtrend since the November peak of around $69,000. Over the past few months, brief rallies have been capped below resistance levels, which means sellers have been in control.
The overall cryptocurrency market cap stands at $1.897 trillion, and Bitcoin Dominance is 41.4%.
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