Bitcoin (BTC), which has a price of $24,287, has seen its price rise by as much as 8 percent in just 24 hours. This is the highest price it has been in over a year.
The upside was that a wider market rally saw most cryptocurrencies post significant losses to erase them. Ethereum (ETH) saw the greatest gains with more than 50% gains in just over a week.
BTC/USD daily chart showing Bitcoin’s jump to $24,287 on Coinbase. Source: TradingView
Analysts believe that the rally will fade at current levels
BTC lost some gains and trades at $23,500 currently. But is it possible for BTC to continue trading and achieve a significant breakout?
Katie Stockton, co-founder Fairlead Strategies founder, told CNBC’s ‘Squawk Box’ in an interview that while the world’s largest cryptocurrency had seen as strong rally over the past few days, this looked more like sharp bear market rally than one likely to sustain into a major relief rally.
“If you do look at past bear market cycles, we’ve seen some massive relief rallies,” she noted, highlighting the +20% gains seen in some assets. However, she feels that despite the surge, indications are that this isn’t going to evolve into a “major relief rally.”
Stockton said the overall market’s outlook remains vulnerable to a downside, noting the market is “challenged” amid an oversold volatility reading and overbought mega cap (stocks) ahead of earnings reports.
The analyst believes that the upside currently seen is less likely to fade at levels so far. Potential signals for a sustained uptrend include a breakout above $25k or an improvement in momentum gauges.