Categories: Crypto Review

Bitcoin has confirmed a reversal to growth but needs tactical respite

Market picture

The bitcoin price has surpassed $21K, adding around 23% over the week. Ethereum jumped 20% to $1570. Other leading altcoins in the top 10 gained between 9% (BNB) and 50% (Solana). Solana has re-entered the top 10, pushing Polygon aside.

The total crypto market capitalisation rose 18.4% over the week, approaching $1 trillion again, according to CoinMarketCap.

Bitcoin was outperforming altcoins this time, which can easily be attributed to the positivity of the stock market last week.

The first cryptocurrency also responded very well to technical signals. Since securing above the 50-day average on January 4, bitcoin has been closing all days with gains. A consolidation above the previous local high and a break of the downtrend resistance caused an acceleration in growth. BTCUSD closed above the 200-day average on Friday, contributing to the weekend’s positive momentum.

Trading near the $21K level brought quotes back to the area before the FTX crash, and this is a new test of the local highs. Traders might want to be prepared that the market will need a short-term correction towards $19.5K before we see another momentum, as locally, Bitcoin looks overheated.

News background

The US Securities and Exchange Commission (SEC) has charged cryptocurrency exchange Gemini and crypto lending service Genesis with selling unregistered securities.

Crypto lending platform Nexo recorded a significant outflow of customer funds amid reports of searches at its Bulgarian office as part of an investigation into potential AML policy violations. Authorities have accused the crypto bank of money laundering, tax irregularities, fraud and providing banking services without a licence.

The Republican Party, which won a majority in the lower house of the US Congress late last year, has begun forming a subcommittee to regulate cryptocurrencies.

The new CEO of cryptocurrency hardware vendor Trezor, Matej Zak, said the financial independence that bitcoin brings is far more important than its market value. He said there would be a consolidation of the crypto market in 2023 and then a bullish trend, which Trezor plans to prepare for.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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