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Bitcoin has recovered from a two-month low reached last week and exceeded a key support point of $26,500, with the 14-day relative strength index finding a stable point at 36.00, according to a daily chart. Ethereum also rose above a key price point of $1,800 24 hours after it reached a low of $1,747.94. Both cryptocurrencies will likely continue to climb this weekend, with bitcoin potentially breaking the $27,000 level. Ethereum could rise above a key point of $1,830 if its ceiling of 45.00 is surpassed. Bulls are taking advantage of the position to increase their crypto holdings.
This article originally appeared on news.bitcoin.com
After weeks of uncertainty and volatility, Bitcoin appears to have found its footing. On May 24th, Bitcoin rebounded from a two-month low of around $30,000, as bulls entered the market once again.
While Bitcoin’s price has been fluctuating for some time, what caused the most recent dip was fears of regulatory crackdowns in China. In late April, the Chinese government warned financial institutions to stay away from cryptocurrencies, which led to some panic among investors. Moreover, Elon Musk’s tweets about Bitcoin causing inefficiencies in the environment also added to the uncertainty.
However, it seems the bulls are back on the field, as Bitcoin surged by almost 10% in mere hours on May 24th. At the time of writing, Bitcoin’s price went past the $40,000 mark.
There are a few reasons for this sudden change in market sentiment. Firstly, there are reports that El Salvador has become the first country in the world to accept Bitcoin as legal tender. This move could open up doors for more countries to adopt cryptocurrencies in the future.
Secondly, PayPal has announced that it will allow US customers to buy, hold, and sell cryptocurrencies on its platform. This news has been received positively by both the crypto and traditional financial industry.
Finally, the recently-held Bitcoin conference in Miami attracted attention from mainstream investors, who perhaps saw it as a signal to re-enter the market.
In the wake of this rebound, most of the major cryptocurrencies have also seen some upward movement. Ethereum is up by more than 12%, Dogecoin is up by over 16%, and Binance Coin has gained almost 10%.
However, it’s important to note that the cryptocurrency market is notoriously volatile and unpredictable. Bitcoin’s price is known to experience sudden surges and dips, which makes it difficult for investors to predict its movements.
However, this rebound from the two-month low is a positive sign for investors who have been worried about the direction the crypto market has been headed in lately. It remains to be seen how long this upward trend will continue, but for now, it seems like the bulls are back in charge.
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