Market risk appetite generally rebounds, Bitcoin rises to recover $50,000 mark

Time:2022-01-01 Source: 822 views Trending Copy share

After a crash during the weekend, Bitcoin regained its gains on Tuesday (7th) Beijing time and recovered the $50,000 mark. When it fell sharply over the previous weekend, its price once fell to around $42,000.

According to Coindesk's quotation, by 13:53 Beijing time, Bitcoin was quoted at US$51,043, an increase of 4.3% in 24 hours. The other major currencies also climbed from lows. Ether reported 4359 US dollars, up 4.8%, Binance coin rose nearly 8% to 587.42 US dollars, and Cardano (ADA) also rose more than 7% to 1.4546 US dollars.

SaxoMarkets senior market analyst Edison Pun said that risk appetite has generally rebounded after Monday, and cryptocurrencies have also been motivated, generally rebounding from lows. The impact of Omicron seems to be much milder than the market digests.

The Bitcoin Fear and Greed Index was still extremely fearful at 25 on Tuesday, but it was slightly warmer than yesterday's 16.

For the previous weekend’s huge shock, most cryptocurrency analysts were not sure about the main cause, but they pointed out that the plunge in financing and new futures positions, as well as the activities of large currency holders, showed signs of large-scale liquidation.

Gaurav Dahake, CEO and founder of the Indian cryptocurrency exchange Bitbns, believes that Bitcoin has rebounded in the short-term, but the upside seems to be limited by the resistance zone of $55,000-60,000. Since April, the weekly momentum indicator turned negative for the first time, and the current market sentiment is still bearish.

Some analysis pointed out that if Bitcoin resumes its rally, the next resistance point will be around the 100-day moving average, which is around $54,500. The 200-day moving average is currently at about $46,300, which will become the next support price.

Matt Maley, chief market strategist at MillerTabak+Co., believes that after the Fed’s conversion to a hawk, the decline in cryptocurrencies should be seen as a warning sign for other asset classes.

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