It appears that bullish sentiment is starting to return to Bitcoin price, at least over the short term
It seems that optimism is starting to return to the entire crypto market, at least in the short term. Bitcoin price surged to $43,000 and is up about 3% over the past 24 hours. At the time of writing, BTC is changing hands at $42,590.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price stabilize as sentiment improves
Bitcoin surged as high as $43,106, leading to a broad market recovery in crypto. The move came after the stock market in the U.S. halted its five-day rout ahead of the Consumer Price Index (CPI) data release on Wednesday.
It is trading above the $40,000 support level and is up about 3% over the past 24 hours. Buyers are starting to return to the market, although the upside appears to be limited to the $45,000 resistance level, which is also near the 200-day moving average. On intraday charts, upside momentum is improving, which suggests buyers could remain active into the Asia trading day.
BTC is the most oversold since December 10, according to the Relative Strength Index (RSI) on the daily chart. Typically, oversold readings precede price recoveries, similar to in late September. This time, however, price reaction to the RSI and other indicators has been delayed. Still, on the weekly chart, the RSI is not yet oversold, which decreases the chance of significant buying pressure.
“Bitcoin & Ethereum saw mild rises Tuesday, while altcoins were a mixed bag of results. This lines up with the recent month of address activity, which has seen BTC and ETH mostly flat, and the drop of activity for assets like XRP, SHIB, & LINK”, Santiment stated.
Most other major cryptocurrencies also rose today. Ether was up over 5% to above $3,200 at the time of publication. Layer 1 token NEAR remained the biggest winner. Despite the crypto sell-off, it is up nearly 13% over the past week.
The overall cryptocurrency market cap stands at $2.010 trillion, and Bitcoin Dominance is 40.2%.
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