After a week-long sideways phase in the crypto market, the bulls are once again setting the tone at the beginning of the new week. While a price increase of around 1.5 percent is enough for Bitcoin to climb to a 3-week high, some altcoins are even registering significantly larger gains. This fuels hopes of a downturn.
Already overnight on Monday, the Bitcoin price regained the $17,000 mark – thus leaving the sideways range in the range between $16,400 and $17,000 that had lasted for more than three weeks. After the brutal downturn of the past year, industry experts see this as a signal of strong support in this area.
According to FundStrat’s Sean Farrell, the blockchain data suggests there is a crowd of willing buyers who “have an appetite to buy Bitcoin at the very specific $16,000 to $17,200 level.” This strong “buying wall” gives hope for the formation of a sustainable bottom at the current level, the expert told the industry portal coindesk.com.
However, the road up again will not be easy, because according to Coinbase analyst David Duong, the next technical obstacle awaits already in the $17,800 area. In addition, the current recovery trends with a view to the long-term chart development are initially of little importance.
Altcoins step on the gas
While at the beginning of the week profits were mainly made across the entire crypto market, with the market value of all coins and tokens increasing by around three percent to $849 billion over a 24-hour period, some altcoins were even able to record significantly higher prices gains than bitcoin. Second-placed Ethereum is up nearly four percent, breaking the $1,300 mark.
As the biggest gainer among the top 20 by market capitalization, Solana rose more than 20 percent on Monday. However, the coin had also suffered above-average losses in the previous year. Reasons for this included repeated failures and the project’s close proximity to the now insolvent crypto firm FTX. Since these issues are still off the table, the current countermovement in Solana should be treated with caution.
Grayscale mother DCG in the eyes of the authorities
A media report that the New York State Attorney’s Office and the US Securities and Exchange Commission want to take a closer look at the crypto group Digital Currency Group (DCG) does not particularly worry market participants. Specifically, the investigation was said to be about internal payments between DCG and the crisis-hit lending subsidiary Genesis.
In addition to Genesis, the company also operates crypto asset manager Grayscale, which manages the world’s largest Bitcoin fund, Grayscale Bitcoin Trust (GBTC).
Notice of conflicts of interest:
CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that may benefit from any price development resulting from the publication: Bitcoin.
The editor-in-chief of the publisher Börsenmedien AG, Mr. Leon Müller, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that may benefit from any price development resulting from the publication: Bitcoin.
The author has direct positions in the following financial instruments mentioned in the publication or related derivatives that may benefit from any price development resulting from the publication: Bitcoin.