On March 1, cryptocurrency investors awoke to the sight of Bitcoin (BTC) rising to $ 44,000 from its weekend correction as the market saw bullish momentum and altcoins rebounded from their lows.
Data from Cointelegraph Markets and TradingView show that the price of Bitcoin rose 16.6% from its low of $ 43,504 on Feb.28 to the $ 50,000 level that bulls are trying to turn back to support.
BTC / USDT 4-hour chart. Source: TradingView
Previously, Michael Saylor, CEO of MicroStrategy, tweeted that the company had bought another $ 15 million worth of Bitcoin, bringing its total stake to 90,859 BTC. This further shows that institutional demand for the top cryptocurrency continues to grow as companies buy every dip. ‘
Analysis of key BTC price indicators also shows that the bulls were ready to buy the $ 43,000 retest that occurred over the weekend.
Not every analyst is optimistic
Bitcoin’s surge above $ 49,000 requires some new highs in the near future, but nothing is certain when it comes to the cryptocurrency market, according to veteran analyst Peter Brandt.
Today Goldman Sachs announced that it would be restarting its crypto trading desk and Brandt quickly tweeted the chart below, pointing out that its launch to the cryptocurrency market in December 2017 did not work out as well.
BTC / USD 1 week chart. Source: Twitter
According to David Lifchitz, ExoAlpha’s chief investment officer, it’s “too early to say” whether the Bitcoin retreat is over, but $ 44,500 appears to have been strong support.
Regarding whether the top cryptocurrency could hit new highs in March, Lifchitz said he wasn’t sure what exactly could happen as March is historically a bearish trading month for BTC.
Lifchitz said the US tax season could put pressure on the market as investors “may have to sell some of their holdings in order to pay for earlier realized capital gains.”
From a bullish perspective, the 20% correction in the second half of February may have signaled an “early start” to the usual March weakness, with the worst of the downturn already having occurred.
Lifchitz said:
“Despite the 20% retreat, we’ve been on an uptrend since the $ 10,000 breakout in October. The big unknown is what the miners will do since they are net sellers. You are the real short term risk. “
Analysis of Glassnode’s NUPL (Net Unrealized Profit and Loss) metric shows that while both of the 20% corrections made during this cycle resulted in the sideways and choppy price movements normally seen in bull markets that However, buyers have stepped in earlier than previous bull cycles and less long-term owners are willing to sell their BTC.
Bitcoin Entity-Adjusted NUPL. Source: Glass Knot
Steady returns help stabilize traditional markets
Traditional financial markets also rallied on Monday as government bond yields stabilized and optimism surrounding the introduction of the COVID-19 vaccine boosted investor sentiment about the future of the global economy.
The S&P 500, Dow and NASDAQ finished the day in the black, hitting 2.38%, 1.95% and 3.01%, respectively. The strong performance of each index was due to the fact that the world of global central banks continued to affirm their commitments to accommodative measures that will support the global economic recovery.
Altcoins also bounced back from their recent losses when Bitcoin price broke to $ 50,000.
Daily market performance in cryptocurrencies. Source: Coin360
Binance Coin (BNB) was the best performer in the top 10, rising 21% to $ 248, while Ethereum (ETH) saw its price soar 9.46% to $ 1,525. PancakeSwap (CAKE) and Fantom (FTM) both gained 36% and are currently trading for $ 12.30 and $ 0.558, respectively.
The total market cap for cryptocurrencies is now $ 1.52 trillion, and Bitcoin’s dominance rate is 61%.
