Crypto investors woke up to a Bitcoin (BTC) rally on March 1 after adjusting to $ 44,000 over the weekend as the market picked up steam and cryptocurrencies recovered from low volatility.
Data from Cointelegraph Markets and TradingView show that bitcoin is up 16.6% from a low of $ 43,504 on Feb 28 to $ 50,000, which is what the bulls are trying to get back for support.
Earlier in the day, MicroStrategy CEO Michael Sailor tweeted that the company bought an additional $ 15 million in bitcoin, increasing its total assets to 90,859 BTC, indicating an increase in institutional demand for the leading cryptocurrency. When it comes to how companies buy every fall. … ”
An analysis of the major BTC price indices also shows that the bulls were ready to buy the $ 43,000 retest that happened over the weekend.
Not all analysts are optimistic
Bitcoin, which has climbed above $ 49,000, will reach new heights in the near future, but according to seasoned analyst Peter Brandt, there is nothing in the cryptocurrency market.
Goldman Sachs announced today that it will restart the cryptocurrency trading platform, and Brandt quickly tweeted on the following chart, indicating that the launch was not very successful for the cryptocurrency market in December 2017.
According to David Lifshitz, chief investment officer of ExoAlfa, it is “too early to tell” if Bitcoin’s downturn is over, but $ 44,500 seems to have provided solid support.
As for whether the leading cryptocurrency could hit new highs in March, Lifshitz said he was not sure what would happen as March was a bearish trading month for BTC.
According to Lifshitz, the US tax season could put downward pressure on the market as investors may be forced to “sell some of their assets to pay off previously realized capital gains”.
On the other hand, a 20% correction in the second half of February may indicate an “early onset” of normal weakness in March, when the worst of the recession has already arrived.
Lifshits S.A .:
“Despite a 20% decline, we are still in an uptrend since the $ 10,000 breakout in October. It is unknown what the miners will do because they are net sellers. They represent real risks in the short term. ”
Glassnode’s net unrealized profit and loss (NUPL) analysis shows that although each of the 20% drawdowns during this cycle created the “lateral and volatile” price action commonly seen in the beef markets, buyers arrived earlier than they were. Bulls. Previous and longest term – bitcoin holders want to sell their bitcoins.
Consistent returns to help stabilize traditional markets
Traditional financial markets also rallied on Monday as the return of the prime minister stabilized and optimism over the development of a COVID-19 vaccine boosted investor sentiment about the future of the global economy.
The S&P 500, Dow and NASDAQ closed the day in positive territory, adding 2.38%, 1.95% and 3.01%, respectively. Strong performance was seen across all indicators as global central banks continued to reaffirm their commitment to adjustment policies that will support the global economic recovery.