Bitcoin set for a ‘significant bounce’ as the crypto holds above $41,000, one analyst says
Bitcoin is holding above $41,000 on Tuesday, after it fell to as low as $38,577, a more than one-month low, on Monday.
The cryptocurrency BTCUSD, 0.24% is trading at around $41,411, up 1.8% over the past 24 hours, according to CoinDesk data. Ether ETHUSD, -0.22% has gained 2.8% over the past 24 hours to around $3,098.
Bitcoin is set to see a “significant bounce” from the technical perspective, as it forms a “bullish divergence” while exiting the oversold region, Marcus Sotiriou, analyst at UK-based digital asset broker GlobalBlock wrote in Tuesday notes.
However, market activity remains muted, especially from retail traders, other analysts noted. The weekly trade volume of bitcoin on major centralized exchanges has plunged to the lowest level since the summer of 2021 during the crypto bear market, according to crypto data provider Kaiko Research.
The seven-day moving average of the number of addresses sending bitcoin to and receiving bitcoin from exchanges remains low, close to bear market levels, Jan Wüstenfeld, analyst at Quantum Economics, wrote in Tuesday notes.
See related article: Bitcoin Price Prediction
For the past month, bitcoin has been trading in the range of $38,500 to $48,500. “We’re not seeing a major influence moving bitcoin price one way or the other,” Rance Masheck, chief executive at iVest Plus, told MarketWatch in an interview. The market has been seeing “pretty balanced transactions” for the bid and ask during the past few weeks, Masheck noted.
U.S. stock indexes traded higher on Tuesday, with the Dow Jones Industrial Average DJIA, +1.45% up 519 points, or 1.5%.