Bitcoin headed towards the consolidation phase on Friday following months of a downward trend and an epic sell-off in January.
Investors are feeling optimistic about the potential for cryptocurrencies to become a mainstream form of payment, and Russia may be helping them along. Since September, the crypto market had its longest rally as investors grew optimistic about Russia’s government and the central bank beginning to accept cryptocurrencies.
Related Reading | Bitcoin and Ethereum rally continues on Russia and Black Rock approval
Avatrade Chief Market Analyst, Naeem Aslam, said;
For some, Bitcoin is the future, and on this front, we have learned that Bitcoin is becoming a legal tender in Russia.
The fact that Black Rock, the world’s biggest asset manager, will offer BTC trading for its clients has been seen as a positive step in promoting the broader adoption of cryptocurrency.
Further to his findings, Aslam added;
These are mammoth developments for Bitcoin, and looking at the price action, it seems like that the rally is about to begin, which could push the Bitcoin price towards the 100K price level.
Crypto Market Gains Today
Ether, the cryptocurrency that powers Ethereum’s blockchain, climbed 3.1% to $3183. Bitcoin advanced 1.1%. The world’s second-largest cryptocurrency by market capitalization is currently trading higher after an impressive rate rise in recent weeks.
While it’s true that both Bitcoin and Ethereum remain 35% below their all-time highs, one should note the fact they were trading at six-month lows just last month.
The crypto market had another rollercoaster day, with some coins recovering after heavy losses. Alt-coins Terra and Avalanche edge 2% higher while doggy meme-coin Dogecoin rose 0.2%. Shina Inu had more rise than other alt-coins and gained 3.5% in a day.
This month, the most popular alt-coins were allocating their resources to Bitcoin, with Ethereum Classic coming in at number three with 5.8% gain and Flow just behind it with 10.3%. Harmony saw a 10.5% increase for those looking into new currencies besides BTC or ETH-based projects.
The crypto market had a great day, with 73 out of the top 100 cryptocurrencies trading in green territory.
Related Reading | Top Crypto Gainers And Losers Today
It is always a challenge to stay on top of the rapidly changing world around us. Especially when it comes down to digital currencies. So many things happened this year that created challenges for those in charge, making them more difficult than normal transactions should be – but all isn’t lost.
Wednesday’s market mayhem was not enough to stop the bulls from ripping off another victory. One of the more notable performances was Unus Sed Leo. The coin bucked trends by nosediving 13% on 60% of Wednesday’s rampage.
The Crypto markets are in support of January’s losses as more coins recover from big falls. In the meantime, Decentraland and Zcash eased 1.8% and 5.3%, respectively.
Bitcoin Price is Stable Moving Forward
Bitcoin is likely to continue rising, with the price of BTC forming an ascending parallel channel on its 4-hour chart.
Bitcoin’s recent woes may be ending as demand for the cryptocurrency increases. If buying pressure continues, Bitcoin price might target a 61% Fibonacci retracement level at $45,154. Or even go higher than that toward $46,822.
When there’s a sudden increase in sell orders, Bitcoin price shoots up to first withstand at the 21 four-hour Simple Moving Average (SMA). The first whitestand sits at $43,467 before dropping towards a middle ground to reach a 50% retracement level.
Featured image from Pixabay, chart from Tradingview.com