Bitcoin (BTC) has moved above $40,000 for the first time in weeks. The largest cryptocurrency in the market registered the largest green candle since October and the market seems now to have turned bullish. Other virtual currencies followed the same trend and are now in green territory, deleting the losses that they experienced in recent weeks.
Bitcoin Surges to the Highest Point in Weeks
According to data shared by CoinGecko, Bitcoin is now being traded above $41,400 and it has a market valuation of $785 billion. The virtual currency has moved higher by over 10% in just 24 hours, showing that there has been a large inflow of buyers that pushed the price higher for Bitcoin.
The positive thing about this recent price move is that Bitcoin and other digital currencies had a bearish week that pushed the price of Bitcoin close to $36,000 for a short period of time. The market was turning bearish and some investors were expecting the digital currency to get closer to $30,000 than to $40,000.
After this price spike, other cryptocurrencies followed, including Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Solana (SOL), Polkador (DOT) and Terra (LUNA), among others. The largest gainers among the top 20 in the last 24 hours were Polkadot (12.8%), Avalanche (12.5%), Binance Coin (12.2%), and Solana (10.2%).
We see that there are no cryptocurrencies in negative territory excluding Maker (MKR), which lost 3.2% in the last 24 hours and it was the worst-performing digital asset among the top 100. Stablecoins remained pegged to their fiat currency or registered slight losses. This means that several investors moved from stablecoins to cryptocurrencies.
The Fear and Greed Index for Bitcoin is now showing fear with 33 points. This is the highest value in recent months. Last month, the market was in extreme fear with 15 points, last week, the indicator showed extreme fear with 24 points, and yesterday, there was extreme fear (20 points). There could be a new update in some hours that would show a better result for Bitcoin.
The question is whether this is a simple bounce in the market or if the trend will continue to be upwards. There is no clear answer to this question and things can change at any time. Despite the technical analysis, there are many fundamental things that should be taken into consideration about Bitcoin and digital currencies.
Over the last months, we have seen how the cryptocurrency market has been highly correlated to traditional financial markets. This has been something that brought weakness to the cryptocurrency industry. Many years ago, Bitcoin was an uncorrelated asset, but increased institutional investment in the crypto industry has changed the landscape.