Bitcón again exceeds US $ 50,000 after falling over the weekend

Bitcón again exceeds US $ 50,000 after falling over the weekend

(Bloomberg) – Bitcoin rose again above $ 50,000 as traders studied the debris from this weekend’s sudden drop.

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The cryptocurrency rallied above its 200-day moving average after falling as low as 22% on Saturday. Technical analysts say the next key level to watch, should it start to rally, would be its last 100-day average price. Still, any sell-off could see support at the 200-day average price of around $ 46,300 followed by $ 40,000.

Bitcoin “experienced a ‘sudden drop’ on Saturday morning,” wrote Matt Maley, chief market strategist at Miller Tabak + Co.. trend from July lows, he added.

Bitcoin and other cryptocurrencies tumbled this weekend amid heightened appetite for risk that also included sell-offs in many areas of the U.S. stock market. central banks to tighten monetary policy and threaten to reduce the liquidity tailwind that lifted a wide range of assets. Some of the so-called altcoins have been hit the hardest: XRP is down about 17% since Friday, Bloomberg data shows.

“Given that we believe that at least part of the strong rally that cryptocurrencies have experienced since the lows of the 2020 pandemic is due to excess liquidity spilling around the system, the fact that cryptocurrencies have been affected since the If the Fed reveals its intentions to make that liquidity less abundant in a more aggressive way, the recent drop in cryptocurrencies should be seen as a warning sign for other asset classes, “said Maley.

Meanwhile, ether, which fell below its 100-day moving average during the selloff, could find resistance around its 50-day average price, although its support is at around $ 3,500. Still, it held up better relative to bitcoin in recent sessions.

“The market seems to be setting prices in a world where central banks move to fight inflation, but some of the subsectors of online life continue to grow, such as the metaverse, TNFs, defi, etc.”, noted Stephane Ouellette , CEO and co-founder of crypto platform FRNT Financial Inc.

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