Photo: Courtesy of QuoteInspector on Flickr
The cryptocurrency market is beginning to turn a corner from the lackluster phase it found itself in since peaking in early November. Most coins have bounced off the bottom and are taking tentative steps toward a recovery.
Is the recent reversal merely a dead cat bounce, or is it the first step toward a sustainable recovery?
Bitcoin Leads Crypto Market Higher
Bitcoin (BITCOMP), which closed above the $40,000 level on Friday for the first time since Jan. 20, has gained further ground on Saturday. The apex crypto bottomed at $33,184.06 on Jan. 24, an area where it was seen consolidating between mid-June and mid-July in 2021.
Since the late January bottom, Bitcoin started a mini rally that had only a short leg. It pulled back yet again at the start of February, triggering fears of another crash.
That was not to be as Bitcoin, along with other cryptocurrencies, rose along with stocks on Friday, catalyzed by e-commerce retailer Amazon, Inc.'s (AMZN) strong quarterly results and the better-than-expected U.S. jobs report for January.
Source: CoinMarketCap
Where's Bitcoin Headed Near-Term
Bitcoin is seeing a consolidation move on Saturday, with the crypto fighting hard to stay above a support level around $41,000. The sideways move is implying that the bull-bear tug is in balance.
The next overhead resistance is found around the $41,700 level, which previously served as a support area in early January. If Bitcoin can convincingly break above this level, it could take off to the $44,000 resistance area. Further ahead, the next resistance level lies around $47,500.
Source: CoinMarketCap
On the contrary, if the rally fizzles, Bitcoin can go all the way back to a support zone of around $37,000. If the level does not hold, the $35,000 area could serve as the next support level. At last check, Bitcoin was seen advancing to around $41,598.94.
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