Bitcoin has gained 2.5% in 24 hours. It is trading at the immediate resistance level, $40k.
Ethereum’s bounce has seen it touch intraday highs near $3,000.
S&P 500 was 2.3% higher in afternoon trading Thursday.
Last Friday, Bitcoin price dropped by more than 5% US indexes plummeted, with the correlation continuing throughout this week. Today, crypto is looking to mirror gains across stock markets again, with Wall Street’s sharp climb after opening higher likely to provide further impetus.
Bitcoin (BTC) and Ethereum (ETH), the ‘big boys’ of the crypto market with a combined market capitalisation of nearly $1.2 trillion (the total crypto market capitalisation is $1.9 trillion at the time of writing), have bounced more than 2% in the past 24 hours.
BTC/USD pairs hover above $40,000, while Ethereum/USD is at the $3,000 resistance. Both coins have been gaining amid a larger recovery in equities.
S&P 500 is up 2.3% in equity markets. Dow Jones Industrial Average is up 1.7%, while the Dow Jones Industrial Average is up 1.7%. The Nasdaq Composite leads the way with 2.8%. There were also green sessions for Asian and European stocks, just days before the US Federal Reserve’s 0.5% interest rate hike.
Bitcoin and Ethereum are still “bullish”
BTC/USD has held steady to support levels at $38K. Retesting the supply wall at $40,000 indicates that bulls still have an opportunity to push higher.
According to the pseudonymous crypto trader and analyst Altcoin Sherpa, the market structure looks bullish. He notedEarlier in the day
“As long as these lows are maintained and we still see higher lows, I think the bullish market structure is still intact. Still thinking 55k+ in the coming weeks.”
Rekt Capital, one the most prominent Bitcoin analysts on Crypto Twitter believes that Bitcoin could rise higher.
“Bullish Divergence on the 4-hourly is playing out. This red area will be the key resistance in very short-term. [above $40,300]. Turning it into support like in the previous yellow circle would be a bullish sign for trend continuation,” the analyst shared.
Chart showing BTC prices over the 4-hour timeframe. Source: Rekt Capital
Altcoin Sherpa explains Ethereum
“Unlike $BTC, ETH is still decently above its last lows and still has a bullish market structure (btc does too but its closer). I would love to see #Ethereum make a higher low. I think that it’s still at the mercy of BTC though, as always – if BTC tanks, so will ETH.”