Bitcoin price soars to three-month high; other major cryptos also gain
Bitcoin price shot past $46,800, rising over 4% over one two-hour period to reach a three-month high. Since last Sunday, Bitcoin has gained over 12% after climbing six consecutive days, although it remains off its $47,200 starting point in 2022. At the time of writing, BTC is changing hands at $46,828.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price springs past $46,500 to hit 3-month high
Bitcoin appears to be overbought on intraday charts, leading to a short-term pullback in price. The cryptocurrency faces initial resistance near $46,000, the top of a three-month-long trading range. Still, support between $40,000-$42,000 could stabilize pullbacks.
BTC established a higher price low relative to the June 2021 bottom on the weekly chart, around $28,800. This year, the latest cycle low was achieved on Jan. 24 at $33,100, indicating renewed buying strength. Further, momentum signals are on the verge of turning positive, which could support a short-term relief rally.
Stronger resistance is seen at $50,996, a 50% retracement of the prior downtrend. BTC’s rally could stall at that point, similar to what occurred in September 2021. This time, however, seasonal strength between April and May could keep buyers active, albeit within a year-long trading range.
On the monthly chart, momentum signals remain negative. That means upside is limited because of solid overhead resistance from the April and November price peaks.
“Bitcoin has now returned to $46.8k for the first time since January 4th. The 11-week high comes as inflation, war, and COVID19 fears have all eased significantly, giving BTC traders an average mid-term trading return of over 10%”, Santiment reported.
Ether and most other major cryptos were also blooming. On Sunday, the second-largest crypto by market cap followed a similar pattern to bitcoin and was changing hands at over $3,270, its highest level since early February. Solana, Cardano, and Avalanche, among other altcoins, were well into the green. Popular meme coins for Dogecoin and Shiba Inu were about 6% and 3.4%, respectively.
The overall cryptocurrency market cap stands at $2.106 trillion, and Bitcoin’s dominance rate is 42.3%.
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