Bitcoin (BTC) price surprised the market on Friday with more than 11% gains, the biggest single-day gain since mid-June. The upside momentum is recorded after a rally in U.S. stocks, which ended the week with gains despite the heavy volatility from Amazon’s robust growth and Facebook’s Meta Platform disappointing guidance.
- Bitcoin took a breather on Saturday after recording gains on the previous day.
- Improved Risk appetite and US stock market gain fuel the rally in the crypto market.
- BTC locked in 27% gains from the lows of January 24 at $32,950.72.
BTC needs to close above $44k to maintain the rally
Bitcoin’s (BTC) price stalled near the higher levels as it hovered near the same level. BTC has breached the descending trend line from the highs of $69000. But a close above the $44,000 level is required to maintain the upside momentum.
The formation of a “Doji” candlestick indicates investors might not be convinced with the current price action. The Daily Relative Strength Index (RSI) spiked to 55 after crawling near 38. Any uptick in the momentum indicator will push the price further up.
After meeting at the immediate target at $42,000 bulls will flex their muscle toward $48,000. This will also coincide with the testing of 200 DMA. An acceptance above the crucial moving average will recoup the highs made on December 3 at $57,670.68.
BTC has halved in its value from ATH. Investors are consolidating near the lower levels on bargain buying as can be confirmed with the rise of volumes.
On the other hand, if BTC failed to sustain the breakout of the bearish slopping line then it could retreat toward the $36,000.