A technical reason for the strength of the digital asset market kept Bitcoin, ether, and other cryptocurrencies from losing their gains from the last two days, which was good news for the market.
Key levels:
Resistance Levels: $53,000, $55,000, $57,000
Support Levels: $43,000, $41,000, $39,000
This week, Bitcoin was trading at around $42,000, but it rose above the important technical level of $45,000 late on Sunday and made even more gains into Monday. Bitcoin is the most popular cryptocurrency, and it was up 1% in the last 24 hours.
As of December 31, 2021, bitcoin prices were at $46,200. This is the first time that bitcoin prices have made gains for the whole of the year.
It's been a good week for Bitcoin, says Marcus Sotiriou, an analyst at digital asset broker GlobalBlock. "Bitcoin is consolidating above $47,000 because the market has been very bullish over the last week," he says (ticker: BLOK.Canada).
In fact, the smaller peer Ether was even more buoyant than before. The value of the token that backs the Ethereum blockchain network rose 3% to above $3,400, the highest level since early January.
Luna was up 10%, solana rose 2%, and cardano rose 3% in price. Smaller cryptocurrencies, or "altcoins," were also up.
It was more mixed for "meme" cryptos, which are called that because they are mostly based on internet jokes and not very important blockchain projects. Dogecoin went down 2%, but the shiba inu was up 5%, which is good.
The recent rise in bitcoin and other digital assets was mostly caused by technical factors, like short-sellers having to cover their positions, which led to a wave of buying. This was on top of the fact that there was a lot of support for cryptocurrencies.
When bitcoin prices were below $42,000 for most of March, they rose steadily last week as more businesses started to use digital assets and the regulatory picture for the industry became more clear.
The technical situation for bitcoin is still good.
Sotiriou said that "on-chain metrics" show that the rally is likely to continue. Using data from the blockchain, which is the decentralized ledger that underpins bitcoin, he said more than 60% of bitcoin hasn't changed hands in the last year.
Another time the percentage of bitcoin's supply stayed the same for more than a year was September 2020, which led to a 500% price move over the next 8 months.
Analysis also shows that bitcoin has a new weekly "buy" signal, which "indicates that the current relief rally has staying power," says Katie Stockton, managing partner of Fairlead Strategies, a technical research group. This is because bitcoin has crossed $45,000.
"We now have an intermediate-term bullish bias because the 50-day moving average is going up," Stockton said. This is because the 50-day moving average is going up. "Bitcoin has room to go up in the near term, and the next level of resistance is at $51,000." if the price goes above that, "secondary resistance near $55,200 would be the goal."
