Crypto reverses stock markets gains again today, with a sharp rally on Wall Street after opening higher likely to provide more momentum for Bitcoin. Last Friday, the cryptocurrency market witnessed a significant drop linked to the US indices.
Bitcoin and Ethereum, the two major players in the crypto market, have gained 2% in the past 24 hours. The combined capitalization of cryptocurrencies has reached nearly $1.2 trillion today, with a total cryptocurrency market capitalization of $1.9 trillion.
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Cryptocurrency markets are witnessing a broad recovery as stocks continue their upward trajectory. BTC/USD is trading above $40,000 while ETH/USD is gaining ground near the $3,000 resistance. Both coins are gaining amid this positive trend for all assets.
The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all rose today. The S&P 500 is up 2.3%, the Dow Jones Industrial Average is up 1.7%, and the Nasdaq Composite is leading the upward trend, up 2.8%. This happened as Asian and European stocks had good days before the US Federal Reserve raised its interest rate by 0.5%.
Bitcoin and Ethereum Still Looking Bullish
Bitcoin price remains well above $38,000, but is close to touching another major supply wall at $40,000. However, this may indicate that the bulls still have some strength and may rally soon.
According to Altcoin Sherpa, a crypto trader and analyst, “the market structure looks bullish.” Is also added;
As long as these bottoms are maintained and we continue to see higher lows, I think the bullish market structure is still intact. I’m still thinking about 55k+ in the coming weeks.
While commenting on the Ethereum prediction, Altcoin Sherpa said;
Unlike BTC in USD, ETH is still decently higher than its recent lows and still has a bullish market structure (btc does too but is closer). Would you like to see a higher bottom consisting of #Ethereum. I think it’s still at the mercy of BTC, as it always has – if it’s BTC tanks, so will ETH.
Related reading | TA: Bitcoin Major Indicators Suggest Consolidating Case for Appropriate Increase
Bitcoin could go up,” said Rekt Capital, one of the top crypto analysts. analyst She said;
The bullish divergence on the 4 hour chart has begun. This red zone will be the main resistance in the very short term [above $40,300]. Turning it into support as in the previous yellow circle will be a bullish signal for the continuation of the trend.
Bitcoin has been below the 100-day moving average for a few weeks. The price was supported by $37,000 and the descending trendline. This has reduced the bearish momentum. The $37,000 mark has become an important support for Bitcoin. If the price drops below that, the price could drop to $30K.
Featured image from Pixabay and chart from Tradingview.com