On Thursday, cryptocurrencies continued their rebound higher with bitcoin (BTC) nearing $60,000 for the first time since last weekend’s carnage.
Bitcoin Advances 6.4% Over Past 24 Hours
Bitcoin has advanced 6.4% over the past 24 hours, currently changing hands at $59,500. This significant gain is a welcome relief after Monday’s crash, which saw bitcoin plummet to as low as $49,000.
Ether Tops $2,600, Snapping Losing Streak Against BTC
Ether (ETH) has also seen significant gains, topping $2,600 and rising 8.8% over the past 24 hours. This marks a positive turn for ETH, which had been experiencing a losing streak against BTC in recent days.
CoinDesk 20 Index Sees Similar Gains
The broad-market benchmark CoinDesk 20 Index has also booked similar gains to bitcoin and ether, with altcoin majors solana (SOL), near (NEAR), avalanche (AVAX), and filecoin (FIL) up nearly 10% over the past 24 hours.
Ripple’s XRP Runs Hottest with 22% Surge
Ripple’s XRP has seen a particularly significant surge, rising 22% over the past 24 hours. This gain is largely driven by optimism surrounding a recent court decision in a long-running case between Ripple and the Securities and Exchange Commission (SEC).
Background on Ripple-SEC Case
The SEC had requested a $2 billion fine from Ripple for violating securities laws, but a U.S. court has ordered the company to pay a much smaller fine of $125 million. This decision has been seen as positive news for XRP investors, who have been waiting for a resolution to this case.
Market Observers Point to Favorable Developments
Market observers point to two favorable developments that supported the rally in bitcoin and crypto prices.
FTX and Alameda Research to Pay Out $12.7 Billion to Creditors
A U.S. judge has approved a plan for FTX and its sister trading firm Alameda Research to pay out $12.7 billion to creditors. This development is seen as positive news for the crypto market, as it may lead to a rebound in former users reinvesting their funds in digital assets.
Russian President Signs Bill Legalizing Crypto Mining
Russian President Vladimir Putin has signed a bill that legalizes crypto mining in the country. This move is seen as a significant development for the global crypto market, as Russia becomes one of the first major economies to recognize and regulate cryptocurrency.
Impact on Bitcoin Price
The rebound in bitcoin price is a welcome relief after Monday’s crash. If BTC finishes the week around current prices, it would form a hammer candlestick pattern, which is often seen as a bullish indicator at the bottom of downtrends.
Chart Pattern Analysis
A weekly bullish hammer appears to be forming on the chart, with the potential for future price action to break above key resistance levels.
Analyst Views
Some analysts are warning that future price action could be choppy, while others are hopeful that a trend reversal is underway.
Caleb Franzen: BTC Reached 200-Day Moving Average Cloud
Caleb Franzen, founder of Cubic Analytics, notes that BTC has reached its 200-day moving average cloud, which may act as resistance to further gains. However, Franzen remains hopeful that the price can break above this level and close above it.
David Zimmerman: No Need to Rush into New Positions
K33 Research analyst David Zimmerman points out that cryptocurrencies rarely rebound in a straight line after capitulation events like Monday’s crash. Zimmerman advises investors to focus on relative strength during this time, rather than rushing into new positions.
Conclusion
The rebound higher in cryptocurrencies is a welcome relief for investors and traders. While some analysts are warning of potential choppy price action ahead, others are hopeful that a trend reversal is underway. With the current gains and favorable developments supporting the rally, it will be interesting to see how the crypto market unfolds over the coming days.
References
- XRP Jumps 17%, Beating Bitcoin Gains, as Ripple-SEC Case Ends
- Russia Seeks to Catch Up with US in Crypto FOMO
