Bitcoin tries to bounce back up

Bitcoin tries to bounce back up

Market Overview

The crypto market cap has changed slightly over the past 24 hours, adding a modest 0.1% to $3.81 trillion. Short-term charts show a slight upward trend with higher local highs and lows. There is no uniformity in the dynamics among the largest coins, ranging from a 2% decline in Ethereum to a 3% increase in Solana and a 6% jump in Bitcoin Cash.

Bitcoin added 0.8% in 24 hours to $111K, bringing the 7-day change to zero and forming an upward trend since 30 August. However, a 4% increase from the lows during this time does not look like a confident bull run. Perhaps we should not expect full-fledged enthusiasm among cryptocurrencies while BTCUSD is trading below its 50-day moving average, which is currently around $115K.

Solana is performing better than many others in the new week, trading again at $210 – the area of highs since February. Further enthusiasm in the crypto market reopens the prospects for growth towards $300, the January peak.

News Background

Strategy additionally purchased 4,048 BTC ($449.3 million) last week at an average price of $110,981 per coin, company founder Michael Saylor said. The company now owns 636,505 BTC, purchased at an average price of $73,765. The total investment is estimated at $46.95 billion.

The only reason Bitcoin is not currently at $150,000 is because of two massive whales, said Bitcoin Magazine CEO David Bailey. They have recently sold about 200,000 BTC, which has had a negative impact on cryptocurrencies.

Glassnode notes that ‘spot metrics indicate fragile demand.’ The future market situation also points to caution among players.

According to analyst Johnny Wu, the current correction in Ethereum could turn out to be a large-scale ‘bear trap’ that will end with a sharp rise in October or November. A similar scenario was observed in September 2021, but in November, ETH set a new record.

The Dogecoin Foundation has announced the creation of an official treasury of $175 million to purchase DOGE. Shares will be issued to finance the initiative. The project will be overseen by 21Shares, a crypto ETF issuer with assets of over $12 billion.

By the FxPro Analyst Team