Cryptocurrencies started to recover when bitcoin broke above $47K for the first time in the last two weeks. The price of Bitcoin increases approximately 10% in the last day, whereas Ether is up 7%. Moreover, global equities are also jumping on the bandwagon of stabilization after going through a volatile week.
FundStrat wrote the following remarks in Friday’s newspaper, “The move higher [in bitcoin] resulted in over 35 million short futures positions being liquidated across major exchanges.” On the other hand, Ulrik K. Lykke, founder of a renowned digital hedge fund, wrote an email to CoinDesk saying- “However, technically speaking, BTC is still trading in the range and has to decisively break the $50K resistance if we are to see higher prices. It is not yet certain whether today’s price really will prove indicative of a greater uptrend.”
According to analysts, the recent upturn is the depiction of an oversold bounce. Technically, this phenomenon is a result of stretched prices to the downside. As a result, short sellers exit their positions encouraging the upside move in cryptocurrencies.
The indexes exhibited a high number of sales since the early last year. However, there are still several risks that most likely limit further growth. These risks include China’s regulatory crackdown, strict measures by European authorities to restrict crypto exchange, and much more.
Check out the latest prices here to see how the cryptocurrencies recover!