Bitcoin´s price rises again but is "not done with its corrective phase"
The cryptocurrency market is back in the green, despite the falls on Wall Street and the tightening of the monetary policy of central banks, that was evident after the Bank of England raised rates and reduced purchases on Thursday, and the European Central Bank, when even the latter indicated a 'hawkish' turn. However, rises in some US tech stocks, such as Amazony Snap encouraged digital currencies, which remain closely correlated with the rest of the financial markets. Bitcoin´s price leaves rises of around 1.5% during the last 24 hours and recovers $37,500.
The rises follow a pullback on Thursday that reached 5% at some points during the day and that led the most traded of the crypto currencies to fall below $36,400, the lowest since January 28th. It also strings two consecutive closes around $37,000, after having managed to place above $38,000 since Monday and leaving a multi-session high above $39,000.
The impact of the central bank spin "on broader risk appetite is probably the most damaging aspect," noted Craig Erlam, analyst at Oanda, "having pulled back from $40,000 on Wednesday, where it briefly threatened to move back up earlier this week." "We could see it consolidate in this area in the near term, and a significant break of $30,000 could trigger another aggressive move lower," the expert explained.
Broadly speaking, analysts warn that the behavior of the queen of cryptocurrencies points to the fact that it is not finished with its corrective phase and that in the current circumstances, it is just as likely to fall to $30,000 as it is to regain $40,000. "We will require Bitcoin futures to break strongly and in weekly doses (it does not trade during the weekend) above $40,000 if we want to leave the door open to the possibility that we are facing something more than a simple rebound," stated José María Rodríguez, analyst at Bolsamanía.
"The truth is that despite the 53% drop from the historical highs, the medium-long term lows and rising highs are still intact. And so it doesn't fall," he added on an optimistic note.
As for other tokens, Ethereum returns to the upside and flies up to almost $2,800, a resistance level that has limited rises in the past few days. Thursday's falls complied with what the charts of the second digital currency by market capitalization were pointing to and the price retested the $2,600 support. In fact, it left a low slightly below this price, according to CoinMarketCap data, and provided a good feeling when it managed to close above it, so experts indicated that it can try again at $2,800.
This is the area to overcome for Ether - the unit of the Ethereum network - to have any chance of returning to the $3,000 it lost on January 21st.
The rises of the Solana network's SOL token or Terra's LUNA token are also noteworthy. The former returns to prices above $100, from yesterday's drops to $95, while the latter advances above $51. Cardano also leaves notable gains, while Dogecoin struggles between red and green. Total capitalization is back to $1.75 trillion after yesterday's drops in the combined market value of cryptocurrencies.