Bitcoin Price Surges 5% to $42,000
After facing selling pressure earlier this week, the Bitcoin price has unexpectedly surged by 5% and reached $42,000. As of now, BTC is trading at $41,809 with a market cap of $819 billion.
Bitcoin Price Catching Up With Equities
According to on-chain data provider Santiment, Bitcoin’s price has surpassed the $42,000 mark, which contrasts with the relatively reserved performance of altcoins. This coincides with the S&P 500 index achieving a new All-Time High (ATH), strengthening the bullish argument for the cryptocurrency market.
Potential Convergence Between Bitcoin and Equities
The prevailing sentiment suggests that Bitcoin and other cryptocurrencies may potentially catch up with the performance of the equities market. The cryptocurrency sector has shown lag compared to stock markets since January 17th when the two markets started moving in opposite directions.
BTC Can Rally to $43,000
Prominent crypto analyst Ali Martinez highlights a significant development as the TD Sequential indicator indicates a buy signal on the daily chart for Bitcoin. Additionally, Bitcoin maintains a favorable position above the 100-day Simple Moving Average (SMA), setting the stage for potential market movements.
Cautionary Note: Monitoring 100-day SMA Support Level
Martinez warns about monitoring the 100-day SMA support level. If this support level is breached, it could lead Bitcoin to a downside target of $33,300.
Notable Uptick in Active Bitcoin Addresses
Martinez reports a significant increase in active Bitcoin addresses, surpassing 1 million. This surge indicates a growing level of participation and utilization of Bitcoin (BTC).
Hot Take: Bitcoin Gains Momentum Amidst Equities Surge
The recent surge in the Bitcoin price, coupled with the potential convergence between Bitcoin and equities, has sparked optimism among market participants. With the TD Sequential indicator signaling a buy signal and increasing active Bitcoin addresses, there is a possibility for BTC to rally further to $43,000. However, caution must be exercised as a breach of the 100-day SMA support level could lead to a downside target of $33,300.
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