U.Today – could see another impressive surge as the market sees a rise in an important technical indicator. Aside from that, there are a few factors that could bolster the value of digital gold.
Yesterday we saw a significant market rotation: the index (IWM) rose by more than 3%, while the Nasdaq fell by more than 2%. A similar rotation signaled the start of a massive rally for Bitcoin and altcoins in November 2020, and this shift suggests a move towards riskier assets.
The total market capitalization of altcoins increased by 400% in the following four months after the sudden surge of IWM at that time. There are reasons to think that something like this could happen again. There are a number of indicators that suggest that the cryptocurrency market, including Bitcoin, may be trending positively.
According to recent data, Bitcoin miners who have been liquidating their holdings are starting to ease up. This easing of selling pressure and downward momentum may facilitate a price recovery. Germany was the biggest seller of Bitcoin in the past few days and it seems they are finally done with that.
According to several mean-reversion indicators, the Bitcoin price trend appears to be reversing. These indicators, which measure the deviation of Bitcoin's price from its historical mean, imply that the current undervaluation may eventually correct itself, resulting in higher prices.
Furthermore, encouraging signs can be seen on the technical chart of Bitcoin price. After recently rebounding from the 200 EMA support level at $58,201, Bitcoin price is currently trading at around $60,265. The next resistance levels to watch out for are the 50 EMA and the 100 EMA. If these levels are breached, it may validate an uptrend and pave the way for another significant rally.
This article was originally published on U.Today
