If you are following our latest cryptocurrencies news, you probably saw this Bitcoin bounce that happened today – where BTC managed to surge from lows below $8,000 to a new price of around $8,400. According to a lot of analysts, the move may suggest that Bitcoin has finally bottomed.
However, the Bitcoin (BTC) price has definitely had a volatile start to the week – and we still not exclude the fact that the bearish momentum is still strong. It all started last week when BTC went to lows at $7,700, after which it retraced above $8,000. However, yesterday’s Asian trading session started with a 4% selloff which brought BTC from $8,050 to $7,700, pushing the Bitcoin news updates to the top.
This Bitcoin bounce shows that by the end of yesterday and start of today, BTC managed to add 8% to its price and post highs of $8,325 which were near a 3.5% gain for the day. Meanwhile, altcoins have also seen an increase on the same basis. Ethereum and XRP, for example, were among the most notable gainers of 6% and 9%, respectively.
The cryptocurrency market has largely been following the risk-on price action today. While traditional markets are moving higher, the commodities are moving lower. This is what makes a lot of analysts think that Bitcoin is nearing a bottom.
In the weekly chart, we can see that BTC closed the week as decisively bearish. It broke and closed below the 20-week moving average (WMA) for the first time since breaking earlier in March. This was of particular note, given the fact that it is something that did not occur in the 2016/17 and is typically seen as being a very bearish indicator on the weekly BTC charts.
Despite all, this Bitcoin bounce showed that the most dominant cryptocurrency has returned and is making the news now. The weekly support is still unclear because of the ups and downs. However, the real market sentiment could start seeming bullish.
While bears will see the 20 weekly moving average (WMA) as lost, the bulls are hoping to hear that this may be a bullish run to look upon. As it stands, the total cryptocurrency market cap has added around $11 billion overnight and is now at $223 billion.
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