Bitcoin has rebounded back from a critical support zone of $40,000 following weak movements at the start of the week. While publishing this blog, the world’s leading crypto trades with a 0.54% gain at $42,193, while its market capitalization stands at $797 billion.
Bitcoin seemed to have neem replicating its past performance this time. Lark Davis, a renowned crypto analyst, stated nothing new for Bitcoin’s current movements. He added that the current situation might terrify new investors.
Moreover, BTC’s Relative Strength Index levels clearly showed oversold conditions for the coin on Monday’s daily chart. According to historical charts, Bitcoin has secured the exact support discovered during the 2021 September sessions.
Meanwhile, Bitcoin had additional downward support at the $37,500 mark. Remember, Galaxy Digital CEO Mike Novogratz had forecasts the BTC might attract institutional players after bottoming at $38,000.
For now, market participants may have to be patient as the crypto need to reclaim 50-da MA and 200-day Moving Average for an uptrend confirmation. For now, players will focus on the United States releasing inflation data on Wednesday. If inflation figures surge against expectations, Bitcoin’s price might see its recovery diminishing.
Will Alts Follow Trend Reversals?
While BTC rebounds, some alts are yet to mimic the actions. For instance, ETH awaits a bounce as its still trades in the red region at $3,117. Ether also lost around 40% of its ATH. Although the market-wide corrections, some tokens appeared to present lucrative actions, decoupling from market trends for some time.
For instance, Terra (LUNA) saw a 100% rally in December, hitting its new ATH of $100. Chainlink (LINK) and Polygon’s MATIC presented somewhat similar actions. That way, the trio might be leading performers for 2022 January.
Though the slight bounce, BTC should surge to the $45K – $50K range for near-term bullish actions. That would boost upticks in the altcoin marketplace. Failure to challenge the barrier at $45K might translate to further retracement, possibly fulfilling the $38K bottom case. With that, alts will explore lower zones before surging. Nevertheless, analysts remain bullish on BTC as far as this year is concerned.
Stay tuned for upcoming developments in the financial space.