Bitcoin continues its recovery at the start of the week, returning above the $65,000 level. The largest cryptocurrency is up 2.10% today.
The correction in the cryptocurrency market has, at least temporarily, been halted. After hitting a local low around $57,000, Bitcoin has gained 14%, with the rebound also supported by improved sentiment in traditional stock markets. The rebound over the last week can be particularly attributed to the following factors:
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The decision of the Federal Reserve and Jerome Powell's speech - although the event itself did not have a dovish tone, the markets breathed a sigh of relief after Powell's speech. The uncertainty before the decision caused capital to flow to safe assets and increased market nervousness. The announcement of the decision on Wednesday was the first upward impulse for the stock market and cryptocurrencies.
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The NFP report on Friday, which was worse than expected, proved to be a second impulse for gains in risky assets. However, shortly thereafter, investors received mixed ISM readings. On one hand, the main index was lower than expected, but on the other hand, the sub-price index significantly rose, suggesting sustained price pressure.
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Inflows into ETFs on Friday rebounded significantly, reaching net inflows of $378 million USD.
Bitcoin rebounded around the $57,000 level, a break-even threshold for short-term investors. These levels again proved to be effective support during the uptrend. However, until Bitcoin decisively breaks the historical ATH, we cannot speak of a return to the uptrend. At the moment, we still remain in a consolidation phase, which could last even a few more weeks. The most important levels to watch are the support level at $57,000 and resistance around $71,500-$73,000 USD.
Source: xStation 5
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