Bitcoin Hits $26.5K as Digital Assets Rally
Bitcoin and other cryptocurrencies advanced Friday as risk-sensitive assets at large enjoyed gains amidst an ongoing digital asset rally in the market. Traders, however, were still bracing for declines after a key technical indicator — the so-called death cross — flashed red this week.
Data from CoinMarketCap shows that Bitcoin is exchanging hands at $26,565, a 1.07% gain in the past 24 hours. So far, the token has managed to recover what it lost during the week to post a 1.16% gain on the weekly price chart.
According to data from the market, bitcoin saw a brief selloff to mid-June lows near $25,000 earlier this week but has since rebounded in action that marked a departure from months of historically low volatility.
Digital assets have advanced in step with the stock market in recent days, with the Dow Jones Industrial Average seeing its best day since early August on Thursday and the S&P 500 on track for a three-day winning streak.
But the technical backdrop bodes ill for Bitcoin despite these gains. On average, Bitcoin falls 2.3% in the week following a death cross, according to Dow Jones Market Data. The death cross formed this week for the first time since January 2022, when prices began the month above $47,000 before plunging.
Meanwhile, cryptocurrency analysts are keeping an eye on Ethereum’s chart patterns, notably the appearance of a hammer candle on the weekly chart. According to Jake Wujastyk, this formation comes after Ethereum experienced four consecutive weeks of declining prices, sparking conversations around potential bullish reversals.
Also, Dogecoin price has trended slightly upward to $0.062 this week after recent court filings allayed initial fears that FTX could liquidate DOGE holdings worth $42 million. On-chain data analysis explores how the confidence shown by long-term investors could yield more Dogecoin price gains in the coming days.
Dogecoin price wobbled under pressure last week as early reports suggested that the troubled FTX Exchange was set to liquidate DOGE tokens worth $42 million to repay creditors as part of its ongoing bankruptcy proceedings.
Trailing this related uptrend are XRP and Shiba Inu, two popular altcoins with a well-defined community of backers. Both coins are on a bullish trajectory today, with XRP up by 3.15% to $0.4963 and SHIB up by 2.03% to $0.000007384.
The price of Cardano (ADA) is trading inside a corrective pattern and has created a bullish double-bottom pattern. Despite these bullish signs, ADA has fallen below an important horizontal support level. The bullish trend reversal cannot be confirmed until the price reclaims it.
An ADA price breakout from the channel will likely lead to a 30% increase to the next resistance at $0.32. However, if the price gets rejected, a 20% drop to the channel’s support line at $0.20 will likely be the future price scenario. Fitch Flags Nigeria’s FX Reserves for Transparency Issue