In a surprising market rebound, the leading cryptocurrency Bitcoin (BTC) soared by 5% in the last day, reaching a high of $67,000 before stabilizing above $66,850. This surge has bolstered the overall crypto market, with other digital currencies also experiencing substantial gains. Ethereum (ETH), the runner-up in market value, climbed 7.5%, achieving trades around $3,527. Solana (SOL) and popular meme tokens such as Shiba Inu (SHIB) and Dogecoin (DOGE) also saw a significant uptick in their values.
Ripple Effect on Altcoins
Bitcoin’s leap towards the $60,000 milestone from its peak rattled the market, triggering a mix of profit-taking and subsequent slowdown among investors. Despite predictions of further dips, the altcoin sector, led by Ethereum and Solana, rallied. Meme tokens capitalized on the positive sentiment, drawing in more investor interest.
ETF Market Observations
Meanwhile, the Bitcoin exchange-traded fund (ETF) market faced headwinds, with SoSoValue data indicating a week full of negative net inflows, totaling -$261.65 million. Grayscale experienced substantial outflows, whereas BTCO saw a decrease of -$10.2 million as of March 20. Despite a total net inflow of $11.41 billion to date, ongoing ETF outflows could spell concern for investors recently buoyed by the market’s optimism.
Analysts Eye Bitcoin’s Technical Indicators
Bitcoin’s current performance defies the ETF outflows, as it has surged past $67,000, elevating altcoin prices. It remains well above key moving averages, which could signal further rises beyond the $70,000 threshold. Technical indicators like the Relative Strength Index (RSI) and the break above a crucial trend line resistance suggest bullish momentum, while the potential for new support levels could provide opportunities for strategic buying.
In the event of a retracement, Bitcoin might find support around the moving averages or trend lines. The Moving Average Convergence Divergence (MACD) on the four-hour chart reinforces the positive trend, hinting that the buying wave could persist while these indicators remain favorable.