Analysts believe sentiment in the market has dramatically improved over the weekend Bitcoin and Ethereum both continued their recovery following mont
Analysts believe sentiment in the market has dramatically improved over the weekend
Bitcoin and Ethereum both continued their recovery following months of a downward trend as the crypto markets were boosted by positive tech company earnings, but could face strong technical resistance.
Bitcoin broke past US$40,000 and is currently trading at US$42,482, with Naeem Aslam, market analyst at Avatrade, adding the earnings of Google, Apple, Microsoft and Amazon helped “revive the risk appetite of investors and helped push cryptocurrency prices up.”
Marcus Sotiriou, analyst at digital asset broker GlobalBlock, believes the positive US jobs data led to global markets responding positively.
Sentiment in the market has dramatically improved over the weekend, Sotiriou said, following Bitcoin breaking out of a downtrend on the relative strength index dating back to October, with similar breakouts in the last year resulting in strong rallies.
American credit unions UNIFY and Idaho Central announced last week that they have partnered with Bitcoin software company NYDIG to offer solutions for Americans to trade and invest in Bitcoin, which also would have helped the price of Bitcoin.
Cryptocurrencies also seemingly received backing from US senators last week, with Senator Pat Toomey saying crypto assets are here to stay.
Senator Ted Cruz added that “cryptocurrency and bitcoin mining provide enormous opportunities.”
He did however say that congress could be “screwing this all up,” with Sotiriou saying that U.S regulation is “undoubtedly Bitcoin’s biggest risk.”
Looking at the price chart, Sotiriou urged further caution over Bitcoin, adding that it “faces strong resistance at US$44,000-US$45,000, with uncertainty in the stock market remaining.”
A United Nations report that said North Korea was using stolen crypto to fund missile programmes seems to have had little effect among investors.
Ethereum was trading 2.15% higher at US$3,072.
Other altcoins such as XRP, Cardano and Dogecoin were all enjoying the ride, trading at 13% higher at US$0.76, 4.2% higher at US$1.18 and 5.67% higher at US$0.16 respectively.
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