Bitcoin price held above $37,000, some altcoins began to stabilize after a volatile week
Bitcoin price held above $37,000 and was up about 3% over the past 24 hours. Meanwhile, some altcoins began to stabilize after a volatile week. At the time of writing, BTC is changing hands at $37,637.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price stalls below $40,000, some observers are concerned about a “crypto winter”
Bitcoin buyers have maintained support at the January 24 low of $32,900 and then held above $35,000 over the past few days. Short-term momentum is improving on intraday charts, which could keep buyers active into the weekend.
Still, longer-term indicators are neutral/bearish, which could limit upside at the $40,000-$43,000 resistance zone. For now, the Relative Strength Index (RSI) on the weekly chart is approaching oversold levels, similar to what occurred in March 2020, which preceded a price rally. This time, however, the monthly chart indicates strong selling pressure that could maintain BTC’s intermediate-term downtrend.
On the daily chart, the RSI has risen from oversold levels since January 22, which could attract short-term buyers. For confirmation, traders could monitor the Nasdaq 100 Index of stocks, which has short-term support at $14,000. An oversold bounce in traditional markets could be a near-term positive for crypto prices as correlations rise.
“Bitcoin’s price dominance is discussed commonly in crypto circles. But social dominance is also important. After altcoins’ amazing 2021, $BTC is discussed at less than half the rate it was a year ago. Typically, high BTC social dominance is ideal”, Santiment stated.
Source: Santiment
Analysts were also looking for signs of a possible bounce in equity markets, which could encourage crypto buying. So far, some traders appear to be on the sidelines in both traditional and crypto markets. The S&P 500 is roughly flat over the past week, compared with a 1% gain in BTC and a 3% drop in ETH over the same period.
Further, given macroeconomic headwinds, some analysts are concerned about a coming “crypto winter,” similar to what occurred in 2017-2018. But it appears that winter is already here, especially given the nearly 40% drop in BTC from its all-time high of close to $69,000 in November.
“Ethereum has regained the $2,550 level to end the week. With Bitcoin ending the week with a nice push of its own, and $ETH’s active address remaining stable, the second crypto asset by market cap should maintain stable prices if utility continues rising”, Santiment reported.
Source: Santiment
LUNA, Terra’s native token, was down as much as 10% during the past 24 hours due to yet another scandal. LUNA is on Abracadabra, a DeFi lending platform run by Sestagalli. LUNA was partly created for issuing stablecoins. The reserves of Terra-based lending and borrowing protocol Anchor, which offers a supposedly industry-beating benchmark deposit rate of around 20%, are also sliding fast as a result of the crypto market crash
The overall cryptocurrency market cap stands at $1.704 trillion, and Bitcoin Dominance is 41.8%.
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Read more:
- Bitcoin Price Upside Remains Limited Given The Intermediate-Term Downtrend
- Top 5 Main Reasons Why Bitcoin Is Crashing, According To BeInCrypto