BTC’s selling pressure has weakened, which could pave the way for a Bitcoin price bounce
Most cryptocurrencies advanced on Wednesday, shaking off some of the bearish sentiment over the past few days. Bitcoin (BTC), the world’s largest cryptocurrency by market cap, returned to above $41,000. At the time of writing, the Bitcoin price is changing hands at $41,407.
BTC/USD 4-hour chart | Source: TradingView
Cryptos rise as Bitcoin price returns above $41,000
The world continued to wrestle with rising prices and bad news pouring out of Ukraine. But at least Bitcoin, Ether, and other major cryptos had a good Wednesday. The largest cryptocurrency by market capitalization was recently trading at about $41,100, up over 2% over the past 24 hours after two weeks of almost straight declines.
Bitcoin is attempting to break above a short-term downtrend as selling pressure wanes. The $41,000 support level has maintained its status as the midpoint of the three-month-long price range for BTC. Buyers will need to make a decisive move above $45,000 to maintain the recovery phase.
BTC was up by 4% over the past 24 hours. Over the past week, however, the cryptocurrency has been down 4%. Immediate resistance is seen at $43,000, which could stall the current upswing in price. Still, buyers could remain active toward stronger resistance at $47,000 and $50,966. The relative strength index (RSI) on the daily chart is starting to rise from oversold levels, similar to what occurred in late January and February, which preceded a price bounce.
Further, a countertrend reversal signal appeared earlier today, per the DeMARK indicators, similar to the Jan. 24 signal, which preceded a 30% rally in BTC. Still, a weekly price close above $40,000 is needed to confirm a countertrend reversal.
“Bitcoin is seeing a continued steady supply of ~4,000 whale transactions exceeding $1M+ Monday through Friday, with mild slowdowns on weekends. We are looking out for large increases to foreshadow a price bounce after April’s retrace”, Santiment reported.
Ether’s second-largest crypto by market cap was trading at about $3,100, up similarly over the same period. After a few weeks of speculation, Ethereum core developer Tim Beiko confirmed in a tweet Tuesday that the long-awaited Ethereum Merge will come later than expected. Instead of June, Beiko said that the network’s transition to proof-of-stake is more likely to come “months later.” In a tweet, he said: “It won’t be June, but likely in a few months after. No firm date yet, but we’re definitely in the final chapter of [proof-of-work] on Ethereum,” according to CoinDesk’s Sam Kessler.
“Ethereum’s market value is back above $3,100 after bottoming out at $2,960 to start the week. Our new ‘Ratio of On-Chain Tx. Volume in Profit/Loss’ ratio revealed that ETH traders were selling at the bottom, a solid sign of an upcoming bounce”, Santiment stated.
Other cryptos were solidly green, with AAVE, GRT, and AVAX rising by more than 8% at certain points. THORChain’s RUNE token rallied by 12% over the past 24 hours, compared with a 4% rise in BTC over the same period.
The overall cryptocurrency market cap stands at $1.921 trillion, and Bitcoin’s dominance rate is 41%.
- Anonymous Whales Withdrawn A Close To $280M In Bitcoin From Coinbase As Price Briefly Plunged Under $40,000
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