Bitcoin and Ethereum saw recoveries over the past day. Mudrex CEO Edu Patel believes the near-term BTC buyers returned to the support floor.
Cryptocurrency tokens managed to reverse losses seen over the last day despite the volatility plaguing risky assets. Factors such as stiffening monetary policies, the Ukraine crisis, and inflation contribute to the ongoing market volatility.
Excluding the dollar-tied USDT, top crypto assets traded higher in Tuesday’s early hours. Dogecoin gained about 20%. Meanwhile, Terra surged 8%, while Ethereum noted a 5% surge over the past day. The overall market saw an improved mood.
Bitcoin and Ethereum kick-started recovery moves over the previous 24 hours. Mudrex founder Edu Patel commented on the price actions, stating that near-term BTC buyers might have stepped up near the support floor.
He added that upticks by the market leaders had most digital tokens stabilizing following the recent slump. Patel trusts the next few days could reveal range-bound price movements.
The global cryptocurrency market cap gained 5.41% over the previous day, standing at $1.87 trillion at this publication. On the other part, the total market volume surged nearly 30% within the past 24 hours to $94.35 billion.
Crypto prices closely mimicked traditional markets after last week’s hawkish statement by Fed’s Jerome Powell. Remember, traditional markets sold off as they readied for the potential stiffer monetary rules.
That is according to reports by the OKX research team. He added that the Fed team would meet in May for another rate hike decision. That would happen in early May and might spell more trouble for the risk assets.
Bitcoin positioned itself for surprising price moves this week amid several highlights as the previous week closed. Besides sub-$40K being its lowest weekly closing since early March, the level market BTC’s fourth consecutive red weekly closing – the first one was in June 2020.
While charts suggested more downtrends, BTC made a significant green closing today, surpassing $40.5K. For now, bears and bulls face off once more to determine the upcoming price direction. Rejection around the vital level of $40.7K can lead to retracements towards $39.5K before another leg-up.
The upward move should surpass hurdles at $41.5K and $42K to trigger a somewhat near-term bottom in Bitcoin’s current action. Nevertheless, bulls should reclaim $43K for a higher high and market structure shift on long timeframes.