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- With the recent move, Bitcoin has given a breakout above the crucial resistance of $27,200 setting up the possibility of the next move upside.
- The uptick in Bitcoin and crypto comes following gains in Nikkei early on Monday. Global macros could determine the next BTC move.
The world’s largest cryptocurrency registered a strong bounceback in the early morning Asia trading hours on Monday, May 15, and is currently trading at 2.35 percent up at $27,492 and a market cap of $532 billion. However, the BTC price is still trading at a 10 percent discount from its May high of close to $30,000.
Profit-taking, macro uncertainties, and low liquidity have been some of the reasons behind the recent selling pressure on Bitcoin over the last week and so. Speaking to Coindesk TV, Ryan Rasmussen, an analyst for crypto fund manager Bitwise said:
Financial markets in general (are) driven by risk, by liquidity, and so, not surprising right now, when people are fearing risk assets as a whole, we’re seeing large swaths of selling. When there’s less liquidity, you’re going to have larger swings in price whenever an asset (is) sold. There will be more liquidity come into crypto.
However, the recent volatility in the Bitcoin price has left investors confused as to what could be its next trajectory. But with the recent gains over the last few hours, Bitcoin has given a breakout above the crucial resistance of $27,200. As long as Bitcoin holds this, it has set itself up for an upward trajectory. Popular crypto analyst, Michael Van de Poppe noted:
Strong movements on #Bitcoin as it swept all the lows in recent moves and grinds back up to $27.2K. Patience, as flipping $27.2K is the first serious trigger for continuation upwards. In that case, close to a temporary bottom & potentially new highs to $36-42K still possible.
Altcoin Support the Bitcoin Rally
The recent bounce back in the Bitcoin price comes along with a surge in the broader crypto market with the entire market cap now back above $1.1 trillion. The world’s second-largest cryptocurrency Ethereum (ETH) is up by 1.33 percent and is currently trading at $1832 with a market cap of $225 billion.
Other altcoins like Cardano (ADA) and Polygon (MATIC) have also jumped by 1.5 percent and 2 percent respectively. However, one altcoin that’s making major moves today is Litecoin (LTC) which is up by 7.5 percent in the last 24 hours and is currently trading at $87.12 with a market cap of $6.35 billion.
Analysts say that the upcoming Litecoin halving around August 2023 could be one of the major reasons behind this price surge. Another reason is that the address activity on the Litecoin blockchain has shot up significantly with the introduction of the LTC20 protocol which allows users to mint non-fungible tokens (NFTs).
⚡ #Litecoin has its rapidly approaching #halving in August. With just 3 months to go, our latest insight looks at the sudden massive increase in active addresses, as well as how #LTC20 is shaking up the network activity and supply distribution of wallets. https://t.co/cwvxPfTZM6 pic.twitter.com/yXCHJkqiEo
— Santiment (@santimentfeed) May 12, 2023
The recent bounceback in Bitcoin and crypto comes along with the surge in Asian indexes. Leading Asia index Nikkei is up by 0.5 percent in Monday’s morning trading hours. Talking about the correlation between the traditional and the financial market, Rasmussen said:
Any kind of mistrust in traditional financial systems plays into the hands of crypto. I’m happy to see the correlation fall between traditional risk assets, traditional equities and crypto.
