Bitcoin has been slowly recovering from the November 2021 - January 2022 sell-off for almost 3 weeks already. The recovery move accelerated by the end of last week with price jumping back above the $40,000 mark. Cryptocurrencies were moving more or less in tandem with stock markets over the past half a year (US500 - blue overlay on the chart below). Today's drop somewhat defies this correlation as US futures and European indices trade higher while Bitcoin drops. Nevertheless, gains in recent days were steep and some profit taking cannot be ruled out. Sentiment towards cryptocurrencies is supported by positive news coming from Russia. National media in Russia reported that country will recognize digital assets as currencies, paving way for a broader adoption.
Taking a look at BITCOIN chart at D1 interval, we can see that the most famous cryptocurrencies jumped over 30% off the late-January low. Price broke above the resistance zone marked with 23.6% retracement of a recent correction ($41,400) and a 50-session moving average (green line). Upward move stalled yesterday in the $44,000 area and a doji candlestick was painted, signalling uncertainty of investors. A pullback and retest of the aforementioned $41,400 area cannot be ruled out. If the upward move is resumed, investors should look towards 38.2% retracement ($47,000) and 50% retracement ($51,000) as next resistance levels to watch.
Source: xStation5
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