Bitcoin price rose above $43,000, suggesting that a recovery from a two month-long downtrend is underway
The Bitcoin price rose to its highest point in a week. The sell-off appears exhausted as buyers attempt to reverse a short-term downtrend. At the time of writing, BTC is changing hands at $43,650.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price rises above $43,000; resistance at $45,000 – $48,000
Bitcoin price has rallied to a one-week high, recovering somewhat from last week’s bad start to the year. At press time, the largest cryptocurrency is changing hands around $43,900, after falling a few days ago below $40,000 for the first time since September. Bitcoin price is still down 5.2% so far in 2022.
As AZCoin News reported, Bitcoin price may have gotten a boost from a U.S. Labor Department report Wednesday showing that the Consumer Price Index, a key inflation gauge, rose to an annual clip of 7% in December, the highest since the early 1980s. But there have been concerns in the market that prices could grow even faster, putting more pressure on the Federal Reserve to move more aggressively to tighten monetary conditions and cool down the economy.
“Despite Bitcoin being 36% below its all-time high two months ago, coins continue to move away from exchanges at an impressive rate. The 26.3k BTC difference between exchange outflow & inflow yesterday is an encouraging sign of less ongoing selloff risk”, Santiment stated.
The buyers supported around $40,000 as oversold signals appeared on the charts. The recent bounce suggests the cryptocurrency is starting to recover after a near-30% decline from its all-time high of around $69,000 in November.
The Relative Strength Index (RSI) on the four-hour chart is approaching overbought levels, similar to what occurred in late December, which preceded a brief pullback. The RSI on the daily chart continues to rise from oversold levels, which means buyers could remain active on price dips.
Still, given the short-term downtrend, the upside appears limited toward the $45,000-$48,000 resistance zone. And on weekly and monthly charts, momentum signals remain negative, which means price rises could be limited for now.
In cryptocurrencies beyond Bitcoin, the Near Protocol (NEAR) rose to an all-time high, on signs the up-and-coming blockchain might be undervalued as it attracts more activity. Ether (ETH) rose 4.2% over the past 24 hours to about $3,370.
Altcoins such as FTM, XLM, and Shiba Inu (SHIB) led the way higher, all up more than 10% over the past 24 hours. The rally in altcoins, which typically outperform bitcoin in a rising market, reflects a greater appetite for risk among traders.
The overall cryptocurrency market cap stands at $2.073 trillion, and Bitcoin Dominance is 39.9%.
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