Bitcoin remains in the green, supported by Powell and US inflation as altcoins soar
The cryptocurrency market remains in the green on Thursday, after US inflation data kept alive the rebound instigated by Federal Reserve (Fed) Chairman Jerome Powell's signals that low rates are here to stay. The benchmark cryptoasset hit a one-week high above $44,000 and a close above $42,000 on Wednesday, and experts are increasingly confident that the recent low below $40,000 will be the floor for the declines.
"Bitcoin is enjoying some mild reprieve over the last couple of days as risk appetite has returned a little in the markets," noted Craig Erlam, analyst at Oanda. He hinted at some caution, however, as "while some may be hoping the crypto has hit a bottom, after seeing strong support around $40,000 earlier this week, there's little yet to suggest that's the case." "It's still early days but the rebound hasn't been particularly forceful. It was lifted by the US inflation data though, which has boosted risk appetite more broadly. Whether that will be enough is another thing," he concluded.
Erlam´s opinion is shared by other market analysts, who are undecided as to whether the $39,650 seen on January 10th is the end of the recent correction. "The only thing to hold on to right now is the important support in the $40,000 area and the origin of the last great upward momentum: the September lows," stated José María Rodríguez, an analyst at 'Bolsamanía'.
The technical analysis, however, has become more positive after the close of the January 12th session above the 100-hour simple moving average. Also, the experts at 'Newsbtc.com' highlight the formation of an uptrend line above $43,200 on the hourly chart of Bitcoin.
On the upside, initial resistance is near the $44,000 level. The next important resistance is located around $44,200 and the recent high. Further gains could take the price closer to the $45,000 level. The next important control zone is near the $45,500 level.
ALTCOINS ARE FLYING
As for the rest of the market, it also echoes the optimism of the queen of the 'cryptos', with rises for all the largest market cap tokens and a total value approaching $2.1 trillion. The rise of meme tokens is particularly noteworthy, with gains of over 10% for both Dogecoin and Shiba Inu.
Cardano or Solana also rise more than 6%, while Ethereum's appearance could not be more promising after confirming its advance above the $3,250 control zone, after it closed above $3,200 for two consecutive days. The price of Ether - the Ethereum network unit - surpassed the $3,400 level and formed a new weekly high near $3,412, despite correcting marginally since then.
A major uptrend line is also forming with support near $3,300 on the hourly chart. On the upside, immediate resistance is near the $3,380 level.