Cryptocurrencies are trying to recover

Bitcoin has halted declines below $20,700, the cryptocurrency sector is attempting to return to growth with a breath of improved sentiment on stock market indices:

• Cryptocurrencies reacted with renewed upward momentum, correlating with U.S. index contracts, which are positioning themselves higher today on the back of a relatively successful start to the earnings season for BigTech companies (Alphabet, Microsoft);
• Ethereum is again rising faster than Bitcoin. The token gains 6% and is trading at $1460. The king of cryptocurrencies is gaining less than 2%, but it is possible that in the event of a euphoric opening on Wall Street, the major cryptocurrency will return to levels at $22,000, and Ethereum will try again to overcome the barrier at $1,500;
• Investment bank Barclays recently pledged to support the Copper platform, which intends to raise $500 million to start investing in the falling cryptocurrency market. This confirms that a sizable number of financial institutions still see upside potential in the cryptocurrency sector, adjusting their strategy accordingly for risk. It is worth noting that the risk may subjectively be perceived as 'increasingly attractive' as the declines continue;
• According to Glassnode data, Bitcoin has been almost completely cleared of short-term investors, which may indicate an emerging new cycle. As has been the case in the past, tokens sold by short-term holders have found their way into the hands of so-called HODLers uninterested in selling Bitcoin, making the supply of the cryptocurrency in the broader horizon dwindling.

The URPD chart shows record high demand around $20,000 and elevated interest in BTC accumulation around $30,000 and $40,000. The vast majority of tokens purchased since the beginning of 2022 appear to be in the hands of holders not inclined to sell, which supports the melting supply scenario. Source: Glassnode

Bitcoin price chart, H4 interval. From a technical point of view, the largest cryptocurrency has managed to return above the psychological barrier of $21,000 and a rebounding movement is currently underway. We can now consider the region of the 100-period exponential moving average (purple curve) as the nearest support zone. Source: xStation 5

Technically analyzing the chart of Ethereum, we also see a rebound from the psychological barrier of $1400, which was further reinforced by the limit of the former downward channel (red, dashed line). Source: xStation 5 

Polygon prices have rebounded from the 38.2% Fibo retracement zone and are currently testing the 50-period exponential moving average (blue curve), which is further reinforced by the 23.6% Fibo retracement. Should the bulls manage to break out above these indications, the next noteworthy constraint will be the downtrend limit marked by the red dashed line. Source: xStation 5