Bitcoin surges above $45,000 as analysts point to further gains

biggest cryptocurrency The market cap is up more than 15% since March 11, and it crossed $45,000 on Sunday. If Bitcoin Miller Tabak+ can continue to break out in a “meaningful way” should it gain a lot of momentum, said Matt Malee, chief market strategist at the company.

Male is observing an so-called “ascending triangle” pattern and says that it wants to continue with the breach above $45,000 during the week as weekend trading could be diluted.

The cryptocurrency gained more than 3% on Sunday and traded at around $46,800 as of 6:30 p.m. New York time, well beyond the upper end of a narrow range of $35,000 to $45,000 from earlier this year.

As the Federal Reserve and other central banks lift some of the stimulus measures taken in response to the pandemic slowdown, the coin is stuck in a tightrope. This means that there is less cash to go towards riskier assets, including crypto. In addition, digital currencies have come under scrutiny and speculation has swirled that they could be used to evade Russian sanctions, although many analysts dismissed that claim.

Nevertheless, bitcoin gained momentum this month with broad gains in US stocks. The coin is up more than 10% since late February, and the Bloomberg Galaxy Crypto Index has also advanced in that period.

“As we test the top of the 2022 trading range for the fifth time, this is one of these bitcoin moments when the narrative can quickly turn and investors pile up, driving the bitcoin price higher,” co- Founder and Managing Partner at Nexo. “Bitcoin-sideways could be the time to wake up from the slumber that has become 2022,” he said, estimating that the coin could reach $100,000 by the end of June.

Although cryptocurrencies under management surged in March, overall trading volume fell 30% to $259 million, according to a report from CryptoKitties, the fifth month in a row that they failed to break out of this decline.

Bitcoin is also well above its 50-day SMA, which is currently near the $41,085 level. According to Bespoke Investment Group, this places it around the 80th to 90th percentile and in the “overbought” range. But, although this indicates the potential for a decline in the price of many assets, with bitcoin it has historically been the opposite, the firm said.

According to the bespoke report, “when it has been overbought in a similar fashion in its past (over the past five years), it has averaged significant gains in one to 12 months.”

According to data compiled by the U.S., while bitcoin has been in the 50-day average over the ninth decade of its spread, it has historically risen 16% in the following month, 100% up six months later, and 274 a year later. % Increased. Bespoke.

“This is not typically what you see for specific stocks or ETFs, but because bitcoin has traded higher for most of the year and there is actually a lot of momentum trading behind it, the overbought level for this particular space has yet to be a headwind. Not made,” Bespoke wrote.

David Duong, Head of Institutional Research at Coinbase Global Inc., pointed out that over the past eight weeks, crypto has seen volatility compared to US stocks. For example, equities saw a two-standard-divergence drop on three separate occasions over the past several weeks, while bitcoin saw a one-standard-divergence drop.

“In our view this decoupling is important, as it suggests that crypto returns may exhibit lower relative volatility than other risk assets,” Duong wrote in a note, which is one of the most challenging markets we have faced in recent history. Some of the situations are between.” potentially support an argument for greater (relative) crypto stability in the short term.”

This story has been published without modification in text from a wire agency feed. Only the title has been changed.