Bitcoin holding firmly onto the crucial $21,000 for the past three days now shows that the broad crypto market is recovering. Cryptocurrencies are on the rise in 2023 after being battered by losses in 2022. Crypto traders are hopeful that the worst of the bear market is over.
Currently, Bitcoin is trading at $21,273. Ether gained 1.23% in the past 24 hours and is trading at $1,582. Among the altcoins, Shiba Inu is the biggest winner. It gained nearly 18% in the last 24 hours. Polkadot is up 4%, Dogecoin gained 3.91%, and Litecoin 2.95%, Avalanche 2%. Polygon and Cardano are in the red.
JJ Kinahan, CEO of IG North America, said the fact that Bitcoin is flirting with $21,500 is amazing. He believes it correlates a little bit with the equity markets. The executive is hopeful that the top cryptocurrency will grace the $22,500 level before resistance sets in. Arcane Research, a crypto research, and analysis platform noted seven consistent days of green returns for the first time since March 2022. It said the relative strength index momentum indicator has pushed toward extreme highs. Arcane highlighted that the recent surge has predominantly been driven by a short squeeze led by consistent aggressive shorting. The firm said Bitcoin’s push above $20,000 was followed by a stabilizing open interest.
This suggests that short traders are cautious – as such prices have stabilized in the short term. Moreover, the BTC price spike has been accompanied by a massive growth in trading volume, which has more than doubled over the last week. The volume has reached $10.8 billion. The trading correlates to an increase in volatility.