Bitcoin (BTC), which hit $42,000 on March 9, was an outstanding overnight candle that saw bulls reclaim support levels.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Trader: Market “still fragile”
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD suddenly “squeezed” past previous resistance at $39600 and went on to deliver 24-hour gains in the region of 11.3%.
The mood was improving among traders despite local highs of $42,438 at Bitstamp. However, caution remained.
Multiple macro factors kept commentators on edge: Inflation, the Russia-Ukraine conflict and the upcoming executive order of America on cryptocurrency all made it difficult to predict what would happen.
“It’s clear that the market looks a lot better now, I can’t deny it. “But, still very fragile and short timeframe, and uncertain,” Michael van de Poppe, a Cointelegraph contributor, said in part of the Twitter comments.
Pentoshi, a fellow analyst and trader, was also cool about the performance. It brought Bitcoin back to the upper portion of the range that it had been in throughout 2022.
If 40.7k holds on 1D/3D THEN we will again look for the yearly open. Prev was from the near blue “value region”. Both the first two came up short. Third time likely the charm IF 40.7k holds Below 40.7k = no bueno Targets: Hold 46.2k and 52-53k https://t.co/zMkoiCZcjV pic.twitter.com/tSigWopXn3
— Pentoshi (@Pentosh1) March 9, 2022
“This was a nice squeeze but ultimately want Bitcoin to reclaim 46-47k so that I feel confident that momentum is regained,” William Clemente added, lead insights analyst at Blockware.
The impact of Thursday’s February consumer price index (CPI), data for February, remained uncertain. This index is expected to rise by 7.9%, which will be a major driver of volatility in the short-term for BTC/USD.
These data would be used to precede the Federal Reserve’s decision next week on key interest rates. Expectations are just as diverse as the scope of the decision.
“IMO BTC’s initial dip from 60k, to 30k in 2021 was due to China’s mining ban. Inflation combined with rate increases & QE ending caused the second dip of 60k to 30k 2021,” PlanB, who created the stock-toflow family of Bitcoin price models.
“Currently, the odds of QE ending and rate hikes seem low.”
LUNA returns top major altcoins
Bitcoin performed well against many altcoins. The top ten cryptocurrencies in market capital struggled to keep up.
Related: Bitcoin recovers from US ban on Russian oil; gold rises to record highs
Ether (ETH), up 7.2% at the time this article was written, while other currencies were flatter such as Ripple(XRP), which was 3.7%.
Terra (LUNA), which is targeting 20% gains, was the beneficiary of the fastest gains. This was its highest gain since mid-January.
LUNA/USD 1-day candle charts (Binance). Source: TradingView
Eileen Wilson –Technology and Energy
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