Will Bitcoin rebound from multi-month declines?

The cryptocurrency market has been losing recently, with bitcoin scoring its 8th consecutive down week. Today, the sector is trying to unwind the declines:

• JP Morgan analysts indicated that a price of $38,000 per BTC is currently 'healthy' for Bitcoin and highlighted that the crypto sector has been losing more recently from the real estate market, among others, as a result of risk aversion. The report could potentially indicate a potential 'undervaluation' of Bitcoin;

• Andressen&Horowitz fund, which manages $22 billion, has raised $4.5 billion, which it will use to 'catch opportunities' in the recently losing digital asset market;

• Cardano's network is approaching a trial modification of Vasili's network in a test environment, which when combined with the Hydra update being installed is expected to create the world's fastest blockchain with 1,000,000 possible transactions per second. We should receive the first information from the developers in early June;

• Bertrand Perez, CEO of Web3 pointed out at the World Economic Forum conference in Davos that the cryptocurrency market is in a slump, which will break out strong projects and purge the market of developers who were driven solely by generating growing returns;

• Ripple creator Brad Garlinghouse also in Davos conveyed that the company's lawsuit against the SEC is nearing its end and if successful, the FinTech company will look to IPO which could potentially trigger a bullish rally in Ripple token prices;

• Cryptocurrencies during Friday's bullish session on the NASDAQ showed no correlation with the technology index. Today the U.S. stock market is closed, sentiment in the cryptocurrency market remains positive. Potentially this could indicate a continuation of the rally on the indices, in the past crypto has often proven to aggregate market sentiment data faster ahead of the indices;

The Fear & Greed Index, which is used to measure cryptocurrency market sentiment, has remained near record lows for many weeks. In the past, this has often been a sign of an impending unwind. Source: Alternative.me

Bitcoin chart, H4 interval. BTC has benefited from good sentiment in traditional markets and is currently breaking out above the psychological $30,000 barrier. The major cryptocurrency has overcome the upper limit of the local downtrend and is now heading towards the resistance zone near $31,000. Source: xStation 5