Bitcoin (BTC) has risen above last week’s low of $28,500, indicating that it has finally found relief. The world’s largest cryptocurrency by market value was trading at over $31,600 in the last 24 hours, up 3.4 percent. Bitcoin’s price has dropped by nearly 16 percent in May, reaching its lowest level since late 2020 at one time.
During the Memorial Day holiday, BTC hit a high of $32,200, outperforming the S& P 500 futures by a significant margin.
In an interview with CoinDesk, Laurent Kssis, the head of Europe at Hashdex, claimed that this is a short-term trend for BTC and that the current signals are not significant and might reverse very rapidly. “I still see a trading range at the $30K area that could break because downward pressure is still weakened,” Kssis said.
Pablo Jodar, financial products manager at Storm Partners, a European systems provider for the cryptocurrency market, also stated that the fundamentals of bitcoin had not altered.
“We may see BTC rise to $35,000 this week as some short sellers are liquidated and must buy back, but we remain negative for the time being,” Jodar said.
“The main question is whether ether can break above $2,000 again and continue its rise as altcoins react to the loss of LUNA, but we are not optimistic in the short term,” Kssis said.
Ethereum (ETH) was trading at roughly $1,900, up 4% on the day.
Then Ethereum had $11.6 million in withdrawals last week, according to CoinShares data. Last week, Ethereum had a far worse performance than bitcoin.
According to CoinShares data, total year-to-date inflows to all crypto-backed funds have totaled $520 million, compared to $5.9 billion at the same time last year.
Alternative cryptocurrencies, or altcoins, have also seen substantial gains in the recent 24 hours, with Cardano’s ADA leading the way with a 27 percent increase, Aave with a 16 percent increase, and NEAR protocol with a 12 percent increase.
Trends In The Market
As Bitcoin (BTC) showed signs of bottoming out and traditional markets showed strength at the start of this week, crypto markets added 4.4 percent to global capitalization in the past 24 hours.
Cardano’s ADA coin led gains among crypto majors with a 17 percent increase to almost 64 cents on Tuesday.
The forthcoming Vasil hard fork, a network upgrade scheduled in June that will boost scaling capabilities, and growth in the issuance of native assets on the network – over 5 million assets have now been produced on Cardano, according to data – are both fundamental catalysts.
The 45-cent level appears to be ADA’s support on price charts. Early this week, the Relative Strength Index (RSI), a metric used by traders to calculate an asset’s price move, plummeted to roughly 33, indicating that ADA may have bottomed. At the 80 cents threshold, though, the token may face significant opposition.
Even as gas prices plunged to new lows, Ether (ETH) gained 5.8%. A decrease in network fees usually indicates a reduction in network demand, implying that the move was driven by traders banking on a market-wide recovery rather than real growth.