The majority of the cryptocurrencies have risen today as Bitcoin went above $22,000. The rise, which came after a month of sideways movement, helped push the total market capitalization of all cryptocurrencies back above $1 trillion.
Bitcoin accelerated and almost touched $22,500 before reversing course slightly. The number one cryptocurrency emerges from a downward trend that began in early April, which is why today’s 8 percent increase occurs.
Bitcoin has to break out of the top of the bear flag it is now trading in and maintain the price above to truly sustain the rally. A higher high on the daily chart is still awaiting confirmation above $22,500.
It might be argued that Ethereum played a role in the recent uptrend. The layer 1 king is rising quickly and is expected to surpass $1,500. With a price increase of 48% over the past 6 days, Ethereum has truly set the pace.
Whether the cryptocurrency’s rise was sparked by SEC chairman Gary Gensler’s comments that it might be free from certain regulatory requirements or whether it was simply a result of crypto following the current upswing in traditional markets, it has provided some very much-needed comfort.
Some market observers claim that the durability of cryptocurrencies in the face of seemingly negative news, such as this week’s worse-than-expected US inflation report, adds to signs that the selloff that erased around $2 trillion from digital assets may have peaked. Crypto investors would want to peek and note that it wasn’t that long ago just to be sure. In November, Bitcoin was trading at almost $70,000 and Ether at about $4,500.
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