Bitcoin (BTC) has witnessed the biggest spike for the first time in 2 months. BTC has been struggling to move above its 50-day moving average ($42,810) for the past two months, however, on Monday morning BTC had its largest gain in the past two months to $42,956.
According to Santiment, a crypto analysis firm, among the top 100 assets, BTC is in the top 26% of discourse since mid-July which generally brings in rises for the cryptocurrency prices.
Bitcoin had gotten a push from a short liquidation on February 4th. Crypto analysts from Fundstat in a recent report mention that this spike in Bitcoin can bring a steady rise in price for weeks to come. The upside targets are at $45,000 then to $51,100.
Bitcoin has been steadily gaining value over the past few days as compared to its severe fall of 50% in November. Technical analysts and researchers from Fundstat speculate that BTC may end up having a short-lived incline and the next few months will be low.
Many experts have suggested to investors to not be fooled by the momentary spike and to invest in BTC now. They claim that this is only a “minor two-week bounce” and should not be taken as an indication of an intermediate-term rally beginning. Keeping an eye on technical levels, especially for prices moving above $40,000 for bulls is key for trading.
Famous cryptocurrencies in the market like Bitcoin and Ethereum have been struggling since investors have been worried about the hawkish Federal Reserve. A chief investment officer claims that the recent concerns and volatility in the market, especially for BTC have been due to a misunderstanding of the fundamentals of the asset class.
