In 24 Hours, Bitcoin Price Jumps 21%, Trading Above $24,000

(CTN News) – The Bitcoin cryptocurrency market is in much better shape than it was on Friday, thanks to the move by the U.S. government to stop the spread of banking contagion, which has led some traders to declare quantitative tightening is over and easy money policies are back.

As the day progressed, the momentum faded after President Biden announced an emergency backstop for struggling banks’ deposits.

As markets closed, the S&P and Dow were down 0.15% and 0.28%, respectively, while the Nasdaq rose by 0.45%.

Trading View says Bitcoin (BTC) price began rallying Sunday afternoon after trading near $20,300 for most of the weekend. On Monday, the emergency announcement gave it a boost to hit a daily high of $24,617, a 21.2% turnaround in less than 24 hours.

A rapid turnaround boosted March Bitcoin futures, Kitco senior technical analyst Jim Wyckoff said in his morning update.

Considering the daily bar chart, the bears have a slight technical advantage since there is still a price downtrend, but only just,” Wyckoff said. “Bulls have some momentum and further gains this week would negate the downtrend.”

While the recent price movements in Bitcoin seemed haphazard and at the whims of traders in the market, a closer look at the chart shows that “BTC’s correction ended at the 200-DMA/0.236 fib retracement level,” says Eight Global, who notes that the daily candle closes were all in the support zone we marked at $20,077 – 20,665.

As a result of the U.S. government’s actions to prevent contagion in the banking sector, BTC’s price “rose back to the 50-day moving average located near $22,900,” according to Eight Global. There are two immediate areas of interest on the daily timeframe now: $21,500 – $21,800 for support, and $22,600 – $23,000 for potential resistance.”

Analysts are currently focusing on an ABC correction, in which the most likely top will be between $23,300 and $24,000, followed by another correction towards $18,300. There is the possibility of invalidating this scenario if $24,000 is flipped to support.

Currently, BTC is trading just above $24,000, but a strong daily close above this level is required in order for resistance to be flipped into support.

The weekly candle on the Bitcoin chart closed under the 8EMA (exponential moving average) after losing the 34EMA the week before, according to Eight Global.

“Both the weekly 200EMA and 50EMA have acted as resistance in the past,” the analysts stated. This is not surprising, given that they were challenged for the first time since March last year, but especially when the weekly 8EMA is above us, there is a lack of relative strength. When looking for long-term investments, it is important to keep this in mind.”

Across the altcoin market, there is green

In the altcoin market, there is a sea of green, as the only tokens in the top 200 showing red are stablecoins, which have been sold in large quantities by traders returning to the market.

On the 24-hour chart, Conflux (CFX) is up 58.89% at $0.24 and Synthetix (SNX) is up 33.46% at $0.24, while Blur (BLUR) is up 31.57%.

A total of $1.072 trillion has been invested in cryptocurrencies, and Bitcoin holds 43.6% of the market cap.

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