Bitcoin (BTC) topped $40,000 for the first time in weeks. The largest cryptocurrency on the market recorded the biggest green candle since October and now the market seems to have turned bullish. Other virtual currencies are following the same trend and are now in the green zone, erasing the losses they have experienced in recent weeks.
Bitcoin soars to highest point in weeks
According to data shared by CoinGecko, Bitcoin is currently trading at over $41,400 with a market cap of $785 billion. The virtual currency has risen by more than 10% in just 24 hours, suggesting that an influx of buyers has pushed up the price of bitcoin.
The positive aspect of the recent price action is that Bitcoin and other digital currencies experienced a bearish week, pushing the price of Bitcoin closer to $36,000 in a short period of time. The market turned bearish, with some investors expecting the digital currency to be closer to $30,000 than $40,000.
Following this price spike, other cryptocurrencies followed, including Ether (ETH), Coin (BNB), Caldano (ADA), Solana (SOL), Polkadot (DOT), and Terra (LUNA), among others. The top 20 gainers in the past 24 hours were Polkadot (12.8%), Avalanche (12.5%), Coin (12.2%), and Solana (10.2%).
We see no cryptocurrencies in negative territory except Maker (MKR), which is down 3.2% in the last 24 hours and is the worst-performing digital asset in the top 100. Stablecoins are still pegged to fiat currencies or have recorded slight losses. This means that some investors are switching from stablecoins to cryptocurrencies.
Bitcoin's Fear and Greed Index now shows fear at 33 points. This is the highest value in recent months. Last month the market was extremely fearful at 15 points, last week the indicator was extremely fearful at 24 points and yesterday it was extremely fearful (20 points). There will probably be a new update in a few hours, which will show better results for bitcoin.
The question is whether this is a simple bounce in the market or whether the trend will continue upward. There is no clear answer to this question and things can change at any time. Despite the technical analysis, there are still many fundamental things to consider about Bitcoin and digital currencies.
Over the past few months, we have seen cryptocurrency markets become highly correlated with traditional financial markets. This has created weakness in the cryptocurrency industry. Many years ago, Bitcoin was an uncorrelated asset, but increased institutional investment in the cryptocurrency industry has changed the landscape.