Bitcoin Holds Over $21,300 as Crypto Market Cap Approaches $1 Trillion

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(Kitco News) -The forward-looking outlook for the crypto market continues to improve as Bitcoin (BTC) managed to hold onto recent gains throughout trading on Tuesday, while the cryptocurrency’s total market capitalization briefly rallied above $1 trillion for the first time since early November, before FTX collapsed.

It was a mixed day in traditional markets as a busy week of corporate earnings kicked off, with Goldman Sachs grabbing headlines after posting a 69% drop in fourth-quarter earnings. As markets closed in the U.S., the S&P and Dow Jones both ended the day lower, down 0.20% and 1.14%, respectively, while the Nasdaq managed to pull off a small gain of 0.14%.

Data from TradingView shows Bitcoin price continued its upward trend that started last week, albeit at a slower pace, reaching an intraday high of $21,605 before falling back to support near 21,300. $, where it now trades.

BTC/USD 4 hour chart. Source: Trading View

Bitcoin’s continued uptrend pushed the top crypto to a four-month high, according to Jim Wyckoff, senior technical analyst at Kitco. “BC bulls have the overall short-term technical advantage amid an uptrend in place prices on the daily bar chart,” Wyckoff said, which “suggests even more upside in the short term,” he concluded.

RSI indicates increased price stability

Bitcoin’s recent strength was also a point of attention in Arcane Research’s latest “Ahead of the curve” market update, which noted that BTC “saw a massive 23% gain and growth in market dominance of 2.2 percentage points over the past week as BTC leads the market recovery.

The report said last Thursday’s CPI print of -0.1% was the main catalyst for the rise. “The recent surge was primarily fueled by a short squeeze led by constant aggressive shorting,” the update reads. “BTC’s push above $20,000 was followed by stabilizing open interest, suggesting that short traders have turned cautious, which could lead prices to stabilize in the near term.”

Arcane Research called the current rally – which happened in the depths of a crypto winter when many traders were out of the market – a “hated rally,” as many sidelined investors ran out of Bitcoin. or had turned into fiat in anticipation of a further decline.

“This caused a short squeeze and subsequent strength in BTC, leading to a resumption of pre-November price levels and pushing the RSI to multi-year highs, a powerful signal of changing momentum,” the analysts wrote. .

The Relative Strength Index (RSI), which is an indicator of momentum, has seen a significant increase over the past week and is heading towards its 2019 highs. “This confirms that the rally is prolonged in the short term”, indicates the report. “This also represents the first appropriate signal of strengthening BTC momentum since the 2021 bull market.”

The report compared BTC’s current rally to its initial rally from the depths of the bear market in 2018. remained within the range for 40 days. Now BTC has regained its Q3 range, the RSI is extended and shorts are cautious, increasing the likelihood of near-term stability,” Arcane Research concluded.

Similarly, crypto market analyst Rekt Capital saw positive developments with the monthly Bitcoin RSI and pointed to the area of ​​the previous bear market low as the area the indicator should break above to further signal an improving outlook. .

For the first time since hitting all-time lows…

Monthly RSI #BTC is pressing above the previous lower bear market area (green)$BTC needs to turn this region into support and the RSI is doing whatever it takes to achieve this #Crypto #Bitcoin pic.twitter. com/nggO7xnjn7

— Rekt Capital (@rektcapital) January 17, 2023

Altcoins continue to climb

It was an overall positive day for the altcoin market as the day’s winners outnumbered the losers in both quantity percentages changed.

Daily performance of the cryptocurrency market. Source: Coin360

Fetch.ai (FET) posted the biggest gain on the day, with the AI-focused project seeing its token price rise 17.56%, followed by a 15.6% gain for Casper (CSPR ) and a 15.46% increase for Ocean Protocol (OCÉAN).

The overall cryptocurrency market capitalization now stands at $998 billion and Bitcoin’s dominance rate is 41.2%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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