Cryptocurrencies have joined the rise in the stock market, albeit with a slight delay. The total capitalisation of all coins rose 4.5% in the past 24 hours to $2.38 trillion.
The Crypto Fear & Greed Index has risen to 41 today after 34 yesterday but has room to grow thanks to the continued positive momentum since last night.
Bitcoin enjoyed impressive demand, adding 5.4% overnight.
The return of risk demand in traditional financial markets pushed the rate above $50K, which attracted new buyers and quickly took the price to $51K.
On the data analysis side, we get a strong bullish signal in the form of a pullback from the 200-day moving average and recovery of the RSI from an oversold area on the daily charts.
Ether has had a more challenging time and has been lagging the crypto market for the past few days, struggling to cling to $4100.
Signs of a local reversal to growth are becoming more evident. The coin being bought on intraday declines and forms an uptrend similar to the one in October-November.
At the same time, traders should increase caution in the coming days, as lower liquidity often spurs volatility . In addition, it is common for the market to give false signals during low liquidity holiday trading. So it is better to let the current positive signals of tech analysis pass the test of time and liquidity.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.