Bitcoin Witnessed The Biggest One Day Gain After Two Months

The price of Bitcoin spiked above its 50-day moving average on Monday for the first time in more than two months. Its price rose to $42,956, as compared to the 50-day technical mark which was around $42,810. 

There has been a continual rise in Bitcoin’s price above the technical mark and recently, it has been correlated with risk assets.  

Bitcoin along with Ether was aided by a raft of short liquidations on February 4.  Crypto analysts mentioned in a recent report published by Fundstat, an independent research boutique, that Bitcoin “can make further upward progress in the weeks to come" given the technical breakout, and also mentioned that the “Initial upside targets lie at $45,000 and then $51,100." 

The technical analysts and researchers from Fundstrat suggest that the largest cryptocurrency has a fair chance of bottoming by the next few months, reported Bloomberg. Bitcoin has gained some sort of stability in the past few days recently after falling about 50% from a record in November. The pricing model tracked by Fundstrat’s Mark Newton, there’s a “good likelihood” that the low for Bitcoin is coming by the spring months, Bloomberg quoted the research report of Fundstrat. 

As mentioned in the report by Bloomberg, analysts have also cautioned investors not to invest randomly just by following the bullish trend now. . “This minor two-week bounce might still be premature in expecting a new intermediate-term rally has begun,” Bloomberg quoted Funstrat analyst, Newton. Among various other key technical levels to watch out for, prices moving above $40,000 would be important for bulls, he mentioned to Bloomberg. 

There has been a decline in famous cryptos like Bitcoin and Ethereum due to the growing concerns about a hawkish Federal Reserve.  

"The current panic and volatility surrounding bitcoin is based on a fundamental misunderstanding of it as an asset class," said Ed Hindi, chief investment officer of Swiss-based cryptocurrency hedgefund Tyr Capital to Reuters.  

"When valuations on the Nasdaq fall, misguided institutional investors start liquidating bitcoin positions en-masse as if it were a tech stock," he further added. 

But there has been a steady rise in the price of Bitcoin from the beginning of February.