After the recent downturn, bitcoin rebounded to above $31000 on Monday. As of press time, bitcoin rose 4.63% to $31360.74 per piece. With the improvement of market sentiment, other cryptocurrencies except bitcoin also rose. Ethereum rose 5.29% to USD 1907.30/piece; Solana, avalanche, Cardano and other alternative currencies all rose by nearly 11%.
MATI Greenspan, founder of quantum economics, said: "in the past few days, the fundamentals and technical aspects of bitcoin have improved. Although it may be too early to draw a conclusion, some optimistic traders believe that bitcoin may have bottomed out."
The US consumer price index (CPI) for may released later this week may also boost the cryptocurrency market. MATI Greenspan said that if inflation shows signs of peaking, the Federal Reserve is likely to slow down the pace of interest rate hike, which will boost investors' preference for risky assets such as bitcoin.
For weeks, bitcoin has been hovering around $30000. Now, bitcoin stands at US $31000 again, which breaks the prediction of some analysts that bitcoin may fall further. However, as the overall U.S. market is hit, it is difficult for bitcoin to gain momentum. According to the latest survey of MLIV pulse, speculative assets such as technology stocks and cryptocurrencies are expected to be hit hardest when the Federal Reserve reduces its balance sheet.
Katie Stockton, co-founder of fairlead strategies, an independent research provider, said on Friday: "with the improvement of short-term momentum, bitcoin has stabilized in the past few weeks." She pointed out that the TD sequential model, which is widely welcomed by technical analysts, recorded a short-term reverse buying signal, "which increases the possibility of a more obvious oversold rebound". In addition, she also said that "the 50 day moving average may become a resistance level".