When the clock struck midnight in New York, a Bitcoin rebound was confirmed, with the price surging to $41,388.27. Coinmarket Cap data shows that BTC surged by 3.4% in the last 24 hours at the time of writing. The rebound softens the 7-day sharp drop to 4.56%, ending weeks where buyers had an upper hand.
Comparing the current price to the short-term low of $39,472 that was set on the 4th of April, it can be seen why technical analysts are positive that the rebound will be sustained.
Technical Analysts Believe that BTC May Hit $51,000
According to Katie Stockton, co-founder of Fairlead Strategies LLC, a 200-day moving average time series projection shows that BTC will peak at $51,000 soon. The crypto expert is confident that since BTC has been ranging between 35,000 to 45,000 in 2022, a breakout from the range is about to occur because of changing dynamics in the financial markets.
Further, Mark Newton, head of the technical strategy and Managing Director at Fundstrat, forecasts that BTC will hit a high of $43,750 up to $44,200 in the coming week. Hence, the short-term performance is expected to be bullish.
In the long term, Stockton and Newton confer that BTC needs to establish an upper support level at $48.248 to support a medium-term rally. The experts add that should BTC plunge below $40,000, a new support level will be established at a low of $27,200, which will prolong the buyer’s market.
What Has Triggered the Rebound?
Michael Novogratz, CEO of Galaxy Digital, had foreseen a bullish rally. The Crypto investor had pegged his sentiments on the Federal Reserve’s interest rate decision as monetary policymakers mull options for taming the record-high inflation.
The Federal Reserve, however, approved an interest rate hike by a quarter-point, dimming any prospects of a shorter-term rebound. Therefore, the current BTC rally shows that the leading digital asset has overcome the liquidity constraint imposed by the hiked interest rate. This is an indicator that Bitcoin’s maturity is on course and becoming less susceptible to economic shocks.
A BTC Surge Rallies the Crypto Market
With a market Dominance of 41%, the dominance of Bitcoin is still significant. Considering that Ethereum, the second-largest Crypto by market capitalization only dominates 19% of the crypto market, BTC sets the trends in the market and most cryptocurrencies are in the green.
ETH has surged by 1.8%, BNB by 0.7%, XRP by 2.54%, SOL by 3%, ADA by 1%, AVAX by 5%, and LUNA by 3.4%. However, USDC and USDT have not changed due to their stability as they are pegged to the US dollar.
The market capitalization is on course to $2 trillion has surged from $1.8 trillion yesterday to the current value of $1,915,916,447,471.