Bitcoin price bounced off short-term support at $44,000 as momentum improved, up to $46,000
Bitcoin price returned to above $45,000 on Friday as volatility faded. The cryptocurrency is up 5% over the past week, although resistance at $48,000 and $50,996 could stall the rally, similar to last year’s September. At the time of writing, BTC is changing hands at $46,476.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price rebounds amid lower volatility
However, this time, pullbacks could be brief, so long as buyers defend support above $43,000-$45,000. Further, the significant loss of downside momentum, per the MACD indicator, could encourage additional buying on price dips over the past few weeks.
The daily chart’s Relative Strength Index (RSI) approaches neutral territory after an overbought reading appeared on March 28. That suggests a pause in the current price rally, which typically occurs during the beginning of the month.
BTC is currently testing support around its previous breakout point at $45,000. According to the DeMARK indicators, upside exhaustion signals provided a timely countertrend reversal set-up earlier this week, although a continuation of that sell signal has not been confirmed. Price action is currently neutral, pending a decisive break above or below the five-day price range.
An uptick in short liquidations occurred over the past 24 hours in the bitcoin futures market because of the cryptocurrency’s price jump. Liquidations happen when an exchange forcefully closes a trader’s leveraged position as a safety mechanism due to a partial or total loss of the trader’s initial margin.
Still, the ratio of buy/sell volume was slightly negative on Friday, indicating low conviction among crypto traders despite BTC’s price rise.
“Ethereum has been gaining in price dominance against Bitcoin, and the ETH/BTC price ratio of 0.074762 on Friday came within millimeters of an 8-week high of 0.074878. The top 10 whale addresses remain to hold a significant % of the supply”, Santiment reported.
Altcoins were also higher, especially AAVE, which posted a 20% gain over the past 24 hours (up 60% over the past week) because of the platform’s version 3 upgrade earlier this month. Ether (ETH) was up 4% over the past 24 hours, compared with a 9% rise in Solana (SOL) and a 1% rise in BTC over the same period.
The overall cryptocurrency market cap now stands at $2.151 trillion, and Bitcoin’s dominance rate is 41%.