Bitcoin and other major coins continued to trade higher on Monday evening as the global cryptocurrency market cap rose 5.5% to $2.1 trillion.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 4.6% | 13.7% | $43,797.33 |
| Ethereum ETH/USD | 3.9% | 16.6% | $3,138.18 |
| Dogecoin DOGE/USD | 6.9% | 14.7% | $0.16 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| XRP (XRP) | +22.7% | $0.83 |
| Kadena (KDA) | +21.8% | $7.75 |
| Polygon (MATIC) | +17.3% | $2 |
See Also: How To Buy Bitcoin (BTC)
Why It Matters: The cryptocurrency market diverged course from U.S. equities on Monday as the S&P500 and Nasdaq closed lower to begin the week.
The breakoff from other assets took place among a dominance of short liquidation, according to Glassnode data. This could indicate a possible short squeeze as the cause of an increase in Bitcoin prices.
Marcus Sotiriou, an analyst with the United Kingdom-based digital asset broker GlobalBlock, said $270 million of short positions were liquidated leading to a “bit of a short squeeze.”
“Sentiment around the crypto market has dramatically improved over the weekend as Bitcoin has also broken out of a downtrend on the RSI dating back to October - Bitcoin broke out of two similar downtrends on the RSI within the past year, which both resulted in incredible rallies, hence potentially foreshadowing a Bitcoin rally to the upside,” wrote Sotiriou, in a note seen by Benzinga.
Pseudonymous cryptocurrency trader Kaleo said that the price actions feels “overextended” at the current levels.
“Expecting a retest to $40K before we see any continuation higher,” said the analyst in a tweet.
Bitcoin believers are back, according to Edward Moya, a senior analyst with OANDA. He said that frothy calls are returning as confidence rises.
The “Fear & Greed Index” by Alternative, which indicated “Fear” yesterday, is now signaling “Neutral.”
On altcoins, Moya said that many crypto traders were looking for a “strong” altcoin season once Bitcoin stabilizes above the $50,000 mark.
Noting the mixed markets on Monday, Moya wrote, “Ethereum, Cardano, Terra, and Solana are all up over 5% on the day as well. The true test for cryptos will be can they maintain a rally if risk aversion hits all markets.”
Read Next: Sequoia Capital India Leads $450M Investment Round In Ethereum Layer 2 Solution Polygon
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
