Cryptocurrencies rallied on Tuesday amid rising stock indices and falling defensive assets such as gold, yen and USTs. Meanwhile, cryptocurrency benchmark Bitcoin started to rally even before news about the reduction of geopolitical tensions between Russia and Ukraine hit the wires, triggering a wave of risk-on sentiment.
Bitcoin rose to its highest mark in the past week (+4.4%), closing near $44,100. Ethereum spiked 7.3% to $3,100, while other leading Top 10 altcoins also locked in gains.
By the time of writing, Bitcoin slipped to $43k, although fundamental news could still act as a driver for further upside in the digital currency.
If buyers manage to gain a foothold in the range of $43k-$44k, followed by the accretion of trading volumes, a powerful breakout at the $45,600 resistance level and sluggish movement could follow, with stop orders pulled out at $47k-$48k. Also, the strengthening of the leading cryptocurrency could be impacted by the fact that the benchmark rebounded from its 50-day moving average, which acted as a support level last week.
News and economic data
Russia has proposed allowing mining of cryptocurrencies in certain regions and imposing taxes on the conversion of crypto assets into fiat.
Overnight, cryptocurrency market cap increased by 2% to $1.98 trln. Since the beginning of January, the market has not risen above the $2 trln mark.
Altcoins outperformed, resulting in a 0.3% decline in the Bitcoin Dominance Index to 40.4%. The Fear and Greed Index rose from 46 to 51, moving from fear into neutral territory.