Bitcoin (BTC) hit $42,000 on March 9 when an impressive overnight candle allowed bulls to reclaim support levels.
Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View
Trader: The market is ‘still fragile’
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD has broken through the previous resistance at $39,600 sharply, providing a 24-hour gain of 11.3%.
Against the backdrop of local highs of $42,438 on Bitstamp, the mood of traders also improved, but caution remained.
Multiple macro factors: the war between Russia and Ukraine, inflation, and the impending U.S. decree on cryptocurrencies have all made commentators wary.
“I can’t deny that the market looks a little better after this move. However, still very fragile, short term and uncertain,” Cointelegraph contributor Mikael van de Poppe. said as part of Twitter comments that day.
Fellow trader and analyst Pentoshi was also cool about the performance that brought Bitcoin back to the upper end of the range where it has lingered throughout 2022.
IF 40.7k is holding on to 1D/3D THEN look again at the yearly opening for the third time, the previous one was from an almost blue “value area”. The first two both came up just short. The third time, probably, the IF 40.7k charm holds
Below 40.7k = no bueno
Goals:
Hold 46.2k
and 52-53k https://t.co/zMkoiCZcjV pic.twitter.com/tSigWopXn3— Pentosh (@Pentosh1) March 9, 2022
“It was a good squeeze, but ultimately we want to see Bitcoin recover 46-47k to feel confident momentum has been restored,” William Clemente, Lead Analyst at Blockware Mining Company, added.
Rates remain open on the impact of February’s consumer price index (CPI) data released on Thursday. This is expected to be 7.9% and a key short-term volatility factor for BTC/USD.
The data will precede the Fed’s decision on key interest rates next week, and expectations are as varied as their scope.
“The first IMO BTC drop from 60K to 30K in 2021 was caused by China’s mining ban. Second drop from 60k argued.
“For now, the chances of a rate hike and an end to QE seem low.”
LUNA returns to the top altcoins by revenue
As such, Bitcoin performed well even against many altcoins, with the top ten cryptocurrencies by market capitalization struggling to keep up.
Connected: Bitcoin Makes Up Losses After US Bans Russian Oil, Gold Hits All-Time Highs
Ether (ETH) is up 7.2% on the day as of writing, while others like Ripple (XRP) are down 3.7%.
Terra (LUNA) was again the biggest gainer, with LUNA/USD targeting a 20% gain, the highest since mid-January.
1-day LUNA/USD candlestick chart (Binance). Source: Trading View