In the aftermath of a huge decline, the cryptocurrency market rose 5.57% in the last 24 hours, raising its entire market value to $2.35 trillion. Although the mood is still staying in the extreme fear zone, it sees cautious optimism, as the crypto Fear & Greed Index increased to 8 from its previous low of 5, and Bitcoin’s rebound to $70,000 from recent lows drove increases in the overall market.
The whole market’s upward trend is majorly driven by Bitcoin’s upswing, which contributes more than half, around 58.2%, to the overall crypto market cap. As it is currently trading at 67,978 with 4.74% high in the past 24 hours, before this, it had reached $71,605 earlier today. But, it is down by 19% over a week and 25% down over a month, which signals the broader downturn.
Bitcoin Gains Back Momentum
As per the Coinglass liquidation data, over the past 24 hours, Bitcoin short positions were liquidated for around $282 million, while longs were liquidated for $118 million, and the open interest has increased by around 2%.
Analysing the exchange-traded fund (ETF) flows, as per SoSoValue data, Bitcoin ETFs recorded $330.67 million in inflows as of February 6, which shows the positive momentum of the institutional side, even though the spot price declined yesterday.
With that, seeing the 4-hour chart, the Bitcoin Relative Strength Index is currently at 40, suggesting the asset is approaching oversold territory but not yet fully reached that zone. The Bitcoin’s MACD line remains above the signal line, indicating that bearish momentum may be easing. If it maintains the same momentum, it can attempt to retest resistance near $72,000 in the near term. But if it falls again, selling pressure can quickly reverse the recent gains.
Altcoins Follow Bitcoin’s Lead with Strong Gains
Followed by Bitcoin rise, Ethereum saw 6.85% up in the past 24 hours, trading at $2,016, then, XRP surged by 9%, and Solana is trading up with 7.05%. While other major cryptos like Cardano and Chainlink all of them rebound, as of writing.
According to CoinMarketCap, yesterday saw a large number of top losers, while gainers were few or none, but today, only three cryptocurrencies in the top 100 are recording losses, as of writing. While LEO led the top gainers with a 17.39% surge, followed by NIGHT and LIT tokens, this highlights the return of positive momentum among altcoins.
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