Bitcoin peaks to local highs of $42K on Saturday after closing above $41,000 for the first time in two weeks. The price of parent cryptocurrency brought a surge in altcoins as well with ETH closing above $3K and SOL managing to cross $110.
BTC is rising from the ashes amid the revival of the stock market. However, there is still some crucial support area required for the recovery of BTC from the Bear Market.
The bitcoin market fell to bear in January. The currency lost 50% of its value from the all-time high. Consequently, the alts also started dipping wiping out the last year’s gains from the market.
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Friday’s upward trajectory was a sign of recovery. Nevertheless, the market can still go in correction mode before the closing candle on Sunday. A popular crypto analysis account on Twitter, Credible Crypto, pointed out the resemblance between the current price movement of Bitcoin and the BTC chart from Q4 2020.
Characteristic of a 1-2, 1-2 or start of a new impulse is strong moves up, shallow pullbacks, continuation. The first chart is from 11-12k before our breakout and run to 60k. The second chart is now, and what I expect to play out to further confirm our major 5th has started. $BTC pic.twitter.com/gDvt4hsQoq
— Credible Crypto (@CredibleCrypto) February 5, 2022
Traders are practicing caution when it comes to trading. The markets seem confusing with the threat of bears still around. At the time of this writing, Bitcoin is trading at 41, 514 with a 7 days gain of 7%.