Bitcoin may have found a bottom after a strong start to the new week.
Bitcoin's losing streak
looks poised to get snapped this week.
Following several red Mondays that saw Bitcoin get hammered in the Asian session even before the opening of US markets, BTC is off to a good start this week. At the time of writing, BTC
is up over 5% in the last 24 hours and trades at $30,600.
This strong start may be what's needed to stop the proverbial bleeding. Last week, crypto traders experienced not the kind of decoupling from equities they were looking for. The Nasdaq 100 bounced off its 11,600 low for a 1,000-point rebound, while Bitcoin barely managed to hold onto its level. Altcoins continued to bleed and ETH
is down 8% over the last seven days, with other layer-ones like SOL
(-14%) and AVAX
(-15%) still getting the stick.
The mood on Crypto Twitter has been slightly more bullish, with market experts like Ptnoshi seeing some room for a bear market rally:
Indeed, the dollar index DXY reversed from recent record highs, allowing Bitcoin to recoup at least some of its heavy losses in recent weeks. With inflation and Fed tightening at least temporarily priced in, a lot of the short-term unknowns seem resolved. This would also explain last week's equity bounce, and Bitcoin may follow with a lag here.
CryptoQuant CEO Ki Young Ju also thinks the bottom is in at this point:
How much Bitcoin can rally will probably still depend a lot on equities, and bulls should not get too confident. The upside looks capped at 33K according to traders, although Bitcoin looks to capitalize on a US public holiday on Monday to start the week strong.
It's time to snap a losing streak.
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