Bitcoin price jumps 21% in 24 hours, trades above $24k

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(Kitco News) – The cryptocurrency market is in a much better position than it was on Friday, as the move by the US government to step in and stop the spreading bank contagion turned into a boon for crypto prices, leading some traders to proclaim a an end to quantitative easing (QT) and a return to easy money policies.

Stocks experienced minor setbacks, first jumping after President Biden announced an emergency freeze on deposits at struggling banks, only to see momentum fade as the day wore on. At the close of trading, the S&P and Dow finished in the red, down 0.15% and 0.28%, respectively, while the Nasdaq managed to increase 0.45%.

Data provided by TradingView shows that after trading near $20,300 for most of the weekend, the Bitcoin (BTC) price started to rise on Sunday afternoon and received an additional boost with the emergency announcement on Monday to reach a daily high of $24,617, a turnaround of 21.2% in less than 24 hours.

BTC/USD 4-hour chart. Source: TradingView

The quick turnaround led to a sharp rise in March Bitcoin futures, according to the morning BTC update from Kitco senior technical analyst Jim Wyckoff.

“Bears still have a slight technical advantage in the near term as a price downtrend is still in place on the daily bar chart, but only just,” Wyckoff said. “Bulls have some momentum and more price gains this week would offset the price decline.”

While the recent price movements in Bitcoin appeared to be random and following the whims of traders in the market, a closer look at the chart shows that “BTC’s correction ended at 200-DMA [Daily moving average]/ 0.236 fib retracement level,” according to analysts at Eight Global, who added that “daily candles were in the support region we had marked at $20,077 – 20,665.”

BTC/USD 1-Day Chart. Source: TradingView

After the US government stepped in to prevent contagion in the banking sector, “BTC price rallied back all the way towards the 50-DMA near $22,900,” Eight Global wrote. “The immediate areas to watch on the daily time frame now are $21,500 – $21,800 for support, and $22,600 – $23,000 for potential resistance.”

The main scenario that the analysts are now looking at is an ABC correction, “with the most likely area for the B-wave peak between $23,300 – $24,000, followed by another correction towards $18,300. This scenario could be invalidated by a flip to support at $24,000.”

At the time of writing, BTC is trading just above $24,000, but a strong daily close above this level is required for a resistance reversal to support to be considered.

On the weekly Bitcoin chart, the weekly candle closed below the 8EMA (exponential moving average) after losing the 34EMA the previous week, Eight Global said.

BTC/USD 1-week chart. Source: TradingView

“Both the weekly 200EMA and 50EMA have acted as resistance in the previous weeks,” the analysts wrote. “All in all, not surprising given that these were challenged for the first time since last March, but especially as long as the weekly 8EMA is above us, there is a lack of relative strength. Just something to keep in mind when looking for long-term entries.” »

Green over the altcoin market

There is a sea of ​​green in the altcoin market, as the only tokens in the top 200 showing red for the day are stablecoins, which have been sold off in droves by traders jumping back into the crypto market.

Daily performance in the cryptocurrency market. Source: Coin360

Conflux (CFX) recorded the biggest gain on the 24-hour chart, currently up 58.89% and trading at $0.24, followed by a 33.46% gain for Synthetix (SNX) and a 31.57% gain for Blur ( BLUR).

The total cryptocurrency market cap is now at $1.072 trillion, and Bitcoin’s dominance rate is 43.6%.