Bitcoin (BTC) price recovered more than 8% during the night of March 1 after a sharp drop over the weekend.

There are three reasons why Bitcoin has risen rapidly in the past 24 hours. These include a global stock market recovery, higher Coinbase premiums, and typical full coverage.

The global stock market rally coincides with the weekend reversal
The global stock market began to recover as soon as the market opened on Monday, March 1.

The stock market has declined over the past week due to the rising yield curve. As the bond market grows, risk-averse assets like stocks have failed.

Holger Zschaepitz said that global risk markets kicked off the week with lower bond yields. He said:

Global risk markets begin the week in the first range, when bonds rise. Australian 10-year bond yields fell 25 basis points, and German 10-year bond yields fell 3 basis points before inflation data. The 10-year US bond settled at 1.41%. 46.8 000 “.
While Bitcoin is a safe haven and store of value, it often moves with the risk market.

This trend comes from the fact that Bitcoin’s market cap is still hovering around a trillion dollars. Bitcoin is relatively undervalued compared to other safe haven assets like gold. Therefore, it is likely to be more influenced by macroeconomic factors, at least in the short run.

Santiment’s analysts explained:

“The ratio between the price of #Bitcoin and traditional stocks is still above the historical norm. As we mentioned in previous computer studies, Bitcoin dollar fees tend to become clearer when this correlation becomes negative, as was the case in December 2020.”

The simultaneous recovery in the global stock market and cryptocurrencies was followed by a slight correction in the cryptocurrency market over the weekend.

Historically, when Bitcoin price drops over the weekend, BTC often sees a relief in the next week.

This is probably due to the fact that trading volumes are lower on weekends. Therefore, the direction can suddenly change when a new weekly light appears.

Coinbase bonus refunds
Over the past 12 hours, Coinbase’s bonus has returned to around $ 100. Before the cancellation, Coinbase was sold at a lower price than Binance, which meant strong selling pressure from the US.

As Cointelegraph reported, the resetting of the forward funding rate indicates that the market is getting less hot. This coincidence, along with the return of Coinbase’s bonus, was a strong signal of an improved appetite for bitcoin, especially in the US.

When the bitcoin price falls on Coinbase, this is indicative of a bearish tendency in the short term, as the US dollar pair naturally trades higher than the Tether.

For the foreseeable future, based on the stock market recovery trend and Coinbase’s ever-high premium, the cryptocurrency market has a good chance of a recovery this week.

Whalemap Whale Clusters also shows that $ 46,000 and $ 56,000 are the most important support and resistance levels in the short term.

With Bitcoin dropping from $ 46,000, the odds are high that it could hit $ 56,000 in the next impulse.

Source: CoinTelegraph