The crypto market has completely reversed its trajectory after a week of correction and consolidation. Massive buying has ensued in the broader cryptocurrency market over the last few hours with Bitcoin (BTC) posting a solid 15% plus gains. As of press time, Bitcoin is trading at $43,219 levels with a market cap of $819 billion.
Bitcoin has been recently at the center stage of the Russia-Ukraine war crisis with donations coming from across the world to Ukrainians, in BTC. Whether today’s price surge is the beginning of a strong trend reversal remains to be seen. However, bitcoin (BTC) is making a move closer to its 100-day moving average (DMA). Any breakout above this and we could be seeing is making a move to its 200 DMA.
— Lark Davis (@TheCryptoLark) March 1, 2022
However, one positive indicator is that despite the massive correction and fears of the Russia-Ukraine war, the Bitcoin accumulation addresses have been on the rise. In fact, they have rather turned parabolic in the month of February.
— Lex Moskovski 🐙 (@mskvsk) March 1, 2022
On-chain data provider Santiment explains that last week, there was a lot of FUD owing to the news of the war and the trader sentiment tanked to the lowest since October 2020. Santiment explains:
Historically, when a week of this level of FUD and negative posts from the crypto crowd occurs, prices have a tendency to bounce higher. It hasn’t been surprising to see that this breakout occurred immediately following the lowest point we’ve seen weighted social sentiment hit since October, 2020.
Altcoins Register Strong Bounce Back
Along with BTC, altcoins too are showing up a solid move with all top ten altcoins registering double digital gains. Ethereum (ETH) is up 11% and has moved closer to $3,000.
On the other hand, Terra’s LUNA continues with its massive rally ahead despite all odds. The LUNA price is up 24% at press time and is currently trading at $87.58 with a market cap of $33 billion. On the weekly charts, LUNA’s gains stand at 76% despite the recent crypto market rout.
With the recent move, Terra LUNA has surpassed giants like Cardano and Solana to become the seventh-largest cryptocurrency by market cap.