Bitcoin price held steady above $40,000 as several altcoins surged, less chance of another major sell-off
Bitcoin price held steady around the $40,000 price level on Thursday while several altcoins took the lead. At the time of writing, BTC is changing hands at $40,604.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price stabilizes as altcoins take the lead
Bitcoin price floated just short of the $41,000 level for much of U.S. trading hours on a day in which several major alternative coins held starring roles. The largest cryptocurrency by market capitalization was recently trading a little under $41,000, roughly where it stood 24 hours ago when it surged past the psychologically important $40,000 barrier. That climb came as Asian equities markets opened seemingly tied, initially, to China’s decision to support its real estate and tech industries to calm investors grown skittish over a regulatory crackdown and faltering economic growth. Asian markets on Thursday continued to rally.
The leading cryptocurrency hovers around the $40,000 price level amid choppy trading conditions. The cryptocurrency faces solid overhead resistance, which could stall the recent upswing in price. Still, lower support at $35,000 and $37,000 could stabilize pullbacks into the Asia trading day.
The Relative Strength Index (RSI) on the four-hour chart is approaching overbought levels, similar to what occurred earlier this month, which preceded brief pullbacks in price. On the weekly chart, however, the RSI is rising from oversold levels, decreasing the likelihood of a significant price sell-off. Typically, BTC consolidates for about two months following an extreme upswing or downtrend. The current trading range between $30,000 and $40,000 could persist until a decisive breakout or breakdown occurs.
“Bitcoin’s ratio of positive vs. negative commentary indicates there are about 4.95x the number of positive posts vs. negative posts across Twitter, Discord, Reddit, and Telegram”, Santiment stated.
Source: Santiment
Over the past few days, the rise in altcoins suggests a greater appetite for risk among crypto traders. Bitcoin (BTC) and Ether (ETH) were up 2% over the past 24 hours, compared with a 20% rally in PancakeSwap (CAKE), as AZCoin News reported. Still, there were some misses, especially in ApeCoin; the token linked to the popular Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection dropped as much as 80% on Thursday.
Despite occasional rallies and crashes, major cryptos (large market capitalization) such as BTC and ETH are stabilizing after a volatile past few days.
Ether (ETH) was changing hands at around $2,800, a roughly 2% gain over the past 24 hours. Most other significant cryptos were green over the same period, some significantly so. The tokens for Avalanche (AVAX) and Solana (SOL)were up over 8% and 5%.
The overall cryptocurrency market cap now stands at $1.813 trillion, and Bitcoin’s dominance rate is 42.4%.
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