Bitcoin dramatically recovered overnight on Friday as investors/speculators digested the prospects of central banks’ easing measures.
The benchmark cryptocurrency established a session high of $10,309.84 on San Francisco-based Coinbase exchange. The move upside brought its gains up by as much as $723.98, or 7.55 percent, as measured from yesterday’s session low of $9,585.86. Elsewhere in the cryptocurrency market, altcoins tailed bitcoin gains, with Ethereum surging the maximum by 4.55 percent against the US dollar. Other gainers included XRP, Bitcoin Cash, Litecoin, and Binance.
The latest rebound – technically – put bitcoin back on track to test the upper trendline of its symmetrical triangle range, as shown in the chart above. It is the sixth time the cryptocurrency rebounded from the lower trendline, confirming that traders are unwilling to extend their short positions anywhere below the said level. The lower volatility noted across this week also showed that traders are in a wait-and-watch approach as global market sentiments hint an absolute path.
According to Teddy Cleps, a prominent market analyst, traders are eyeing a so-called 21-weekly exponential moving average (EMA) as support, as shown in the chart below.
“Add the 21ema and look at longer timeframes (weekly) – as long as price continuously closes above, there is a clear bull bias. The moment we close below, you are technically allowed to freak out – till then, enjoy the ride.”
Bitcoin and Market Fundamentals
Meanwhile, there are fundamentals at play. The Federal Reserve mediated in the US money market third-day in a row to ease pressure on short-term lending. The New York Fed injected $75 billion in the market, with its auction oversubscribed as banks demanded $84 billion. That means the Fed could continue the cash injection even on…