Bitcoin price surged past $48,000 and is attempting to reverse a bearish start to the year

Bitcoin price topped $48,000 earlier today, turning positive for the year after a multi-month downtrend. BTC was trading at around $47,415 at press time and is up 5% over the past 24 hours.


BTC/USD 4-hour chart | Source: TradingView

Bitcoin price rallies as crypto holders accumulate

Bitcoin buying activity accelerated over the weekend as momentum signals turned positive. The cryptocurrency broke above initial resistance at $46,000, although stronger resistance at the 200-day moving average, now at $48,289, could stall the relief rally.

The daily chart’s relative strength index (RSI) is approaching overbought territory, similar to what occurred last October, which preceded a sell-off. This time, however, buyers appear to be targeting a 50% reversal of the four-month-long downtrend, which would yield additional upside toward $50,966. Momentum signals on the weekly chart have significantly improved, which was previously seen at around the July low of $29,400. Still, momentum remains negative on the monthly chart, which could delay a significant price rally in the short term.

“Bitcoin may have ended Monday mostly flat, but not before its first visit above $48k caused a welcome sight of social volume returning to the one market cap asset in crypto. In terms of altcoins, WAVES has stood tall above the top 100 pack”, Santiment reported.


Source: Santiment

Ether, the second-largest crypto, was changing hands under $3,400, a roughly 3% increase for the same period, compared with a 25% rise in Solana (SOL). The rally in altcoins relative to BTC reflects a greater appetite for risk among crypto investors. Almost other major cryptos spent much of Monday well into the green.

Some might say that the Bitcoin price hike above $47,000 was the nail in the coffin for the bears because the cryptocurrency displayed strength during global macroeconomic uncertainty.

There are no signs of bullishness from Asian retail traders, as measured by the CNY Tether premium, and there is no indication of pressure from leverage longs (buyers) on futures markets. Therefore, the overall crypto market sentiment is neutral.

The overall cryptocurrency market cap stands at $2.130 trillion, and Bitcoin’s dominance rate is 42.3%.

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