Bitcoin remains green, supported by Powell and US inflation as ‘altcoins’ fly
Bitcoin rises along with more than 10% for meme tokens dogecoin and shiba inu
The cryptocurrency market continues to subscribe to the green this Thursday, after the US inflation data kept alive the rebound instigated by the president of the Federal Reserve (Fed), Jerome Powell, with his signs that there are still low rates for a while. On Wednesday, the benchmark crypto asset made a one-week high above $44,000 and a close above $42,000, with pundits increasingly confident that the recent low below $40,000 is the floor of the decline.
“ Bitcoin is enjoying a bit of a reprieve over the last couple of days as risk appetite has returned a bit in the markets,” says Oanda analyst Craig Erlam. He suggests some caution, however, the expert, since “although some hope that the cryptocurrency has bottomed, after seeing strong support around $ 40,000 earlier this week, there is still little indication that this is the case. ”. “It’s still early, but the rebound hasn’t been particularly strong. However, US inflation data has boosted risk appetite across the board. Another thing is if that will be enough”sentence.
This reflection is shared by other market analysts, who are undecided as to whether the $39,650 seen on January 10 is the end of the recent correction. “The only thing to hold on to right now is the important support it has in the $40,000 area and the origin of the last big upward momentum: the September lows,” says José María Rodríguez, an analyst at ‘Bolsamanía’.
Technical Analysis of Bitcoin
Technical analysis, however, has turned more positive after the January 12 session closed above the 100 hourly SMA. Likewise, the experts at ‘Newsbtc.com’ highlight the formation of an upward trend line above $43,200 on the hourly chart of bitcoin .
To the upside, initial resistance is near the $44,000 level. The next major resistance is around $44,200 and the recent high. If further gains occur, the price could move closer to the $45,000 level. The next major control zone is near the $45,500 level.
ALTCOINS FLY
As for the rest of the market, the optimism of the queen of the ‘cryptos’ has also been echoed, with increases for all the tokens with the largest market capitalization and a total value approaching 2.1 trillion dollars. The rise of meme tokens stands out especially, with rises above 10% for both the dogecoin and the shiba inu .
Cardano or solana also gain more than 6%, while the appearance of ethereum could not be more promising after confirming its advance above the control zone of $3,250, after closing above $3,200 for two consecutive days. . The price of ether – the unit of the Ethereum network – broke above the $3,400 level and formed a new weekly high near $3,412, despite marginally correcting since then.
There is also a major uptrend line forming with support near $3,300 on the hourly chart. To the upside, immediate resistance is near the $3,380 level.