Bitcoin (BTC-USD), the largest digital token by market cap, is erasing year-to-date losses as the global crypto market cap gains over 6% to $2.13T.
Specifically, bitcoin (BTC-USD +6.6%) is drifting up to $47.5K in early morning trading Monday, meeting the same level seen in Jan. 2022, though still down 15% Y/Y. Ethereum (ETH-USD +7.1%) is also jumping to $3.37K, but down 10% YTD and +100% Y/Y.
On a technical basis, bitcoin (BTC-USD) appears to be in overbought territory compared with its 50-day moving average, recently changing hands at $42.4K. In theory, the price of BTC should revert back down to its mean; however, when it’s “been trading in the eighth or ninth decile relative to the 50-DMA it’s historically about doubled in the next six months,” Bloomberg reported, citing a note from Bespoke Investment Group. “Because Bitcoin has mostly traded higher over the years and really has a lot of momentum trading behind it, overbought levels have yet to become a headwind for this particular space,” Bespoke highlighted.
Furthermore, “Bitcoin’s on-chain metrics, which have shown long term holders accumulating over the past few months, are finally proving to be accurate,” GlobalBlock analyst Marcus Sotiriou told Barron’s. “With all macro headwinds being priced in for the short term, we are seeing some long-awaited relief,” he added.
Cryptos in the green: binance coin (BNB-USD +5.8%), ripple (XRP-USD +6.5%), cardano (ADA-USD +9.4%), solana (SOL-USD +10.5%), terra (LUNA-USD +4.8%), avalanche (AVAX-USD +8.3%), polkadot (DOT-USD +9.7%), dogecoin (DOGE-USD +8.6%), shiba inu (SHIB-USD +14.9%), polygon (MATIC-USD +6.0%), wrapped bitcoin (WBTC-USD +6.6%), litecoin (LTC-USD +5.7%), NEAR protocol (NEAR-USD +4.6%), chainlink (LINK-USD +8.0%) and uniswap (UNI-USD +8.4%).
See why SA contributor Florian Grummes views Bitcoin (BTC-USD) with a Hold rating.
On Friday, bitcoin rose to sub $45K.