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Bitcoin and the entire cryptocurrency market returned to the green zone on Thursday as appetite for riskier assets increased following comments from the Federal Reserve.
With the exception of dollar-pegged stablecoins, all of the other eight of the top 10 digital tokens were up 8:30 GMT. Avalanche increased 16% to hit the top 10 tokens, while Solana grew 11%.
The capitalization of the global cryptocurrency market rose more than 3% to $ 2.37 trillion from the previous day. However, the total volume of the crypto market has grown by more than 25% to $ 131 trillion.
After the US Federal Reserve cut back on the coronavirus pandemic in response to rising inflation, Bitcoin’s price has surged in the past 24 hours.
Given that Bitcoin and other digital assets can hedge against any potential depreciation of the dollar, investors turned to crypto in the face of uncertainty.
Bitcoin movement
Bitcoin and the US dollar were up 1.05% on Wednesday. After a 3.51% rally on Tuesday, Bitcoin ended the day at $ 48,901.
After a mixed morning, Bitcoin fell to an early afternoon intraday low of $ 46,600 before making a breakout. Escaping the first major support at $ 46,942, Bitcoin rallied to a late intraday high of $ 49,520.
The short-term bull trend remained unchanged despite the recent pullback to $ 41,000 levels. Bitcoin bears would need a sustained fall through the 62% FIB of $ 28,814 to form a short-term bearish trend.
This morning
At the time of writing, Bitcoin is up 1.7% to $ 48,860. A mixed start to the day saw BTC plummet to a morning low of $ 48,786 and then rally to a high of $ 48,985. Now the asset is fluctuating in a narrow range.
Bitcoin left major support and resistance levels untested.
Otherwise it was a good start to the day.
What does the leading asset expect tomorrow?
Bitcoin would need to avoid the $ 48,340 turn in order to trigger the first major resistance at $ 50,081. However, for the flagship cryptocurrency to break out of Wednesday’s peak of $ 49,520, support from the broader market will be required.
Unless there is a sustained crypto rally, the first major resistance level is likely to limit upside potential. In the event of an extended rally, BTC could test the 23.6% FIB resistance at $ 53,628 before any pullback. The second major resistance level is at $ 51,260.
A dip through the $ 48,340 pivot point would result in a first major support at $ 47,161. Avoiding another lengthy sell-off on this day, Bitcoin should stay away from levels below $ 46,000. The second major support level is $ 45,420.
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
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