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Bitcoin reclaims $20k handle

Bitcoin is now trading back above the psychologically-important $20,000 mark, which has restored the total market cap of cryptos above US$ 1 trillion.

For all its woes, which we have been documenting consistently via these weekly articles, Bitcoin has proven remarkably resilient when stacked against the performance of other major assets so far this quarter:

  • Nasdaq 100 = -2.17%
  • S&P 500 = -3.44%
  • Gold = -9.7%
  • Bitcoin = +7%
  • DXY (benchmark dollar index) = +8.6%

(quarter-to-date performance, as of the time of writing)

Bitcoin reclaims $20k handle

Bitcoin’s relative stability is further evidenced by the convergence of its 50-day and 100-day simple moving averages, just above current prices.

However, from a technical perspective, the converging of these two widely-used technical indicators may exert strong immediate resistance for Bitcoin, limiting attempts to punch above $21k over the immediate term.

 

Calmer waters spell relief for cryptos

To be clear, market conditions have been relatively benign today. The US dollar’s ascent is taking a breather on Tuesday morning, allowing risk assets such as US equity futures and cryptos to breathe a sigh of relief.

That’s in stark contrast to the heightened turmoil in the sessions following the Fed’s ultra-hawkish projections after last week’s FOMC meeting.

But that isn’t to say that Bitcoin, as well as cryptos and other risk assets overall, will only enjoy smooth-sailing days from here on out.

For proper context, Bitcoin still has lost more than half of its value compared to where it started the year, being down by 56.7% on a year-to-date as of the time of writing.

Crypto has been beholden to broader risk sentiment, as traders and investors continue to anguish over the prospects of further rate hikes worldwide and a looming global recession.

Still, if Bitcoin can continue demonstrating its resilience in the face of such woes, that may attract more buyers onside to ultimately bolster this asset’s claim to being a safe haven asset.

 

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