Cryptocurrency market capitalisation rose 3.7% in the last 24 hours, again reaching $2.24 trillion, with almost the entire top 100 coins in green over the past 24 hours.
The Cryptocurrency Fear and Greed Index has added 2 points to 27. This is still a ‘fear level’, but the general dynamic over the past few hours suggests that investors are opting to buy with the expectation of a further bounce from these levels.
Bitcoin and Ether have added around 4% in the past 24 hours, managing to move back above the signal levels. BTCUSD is trading above the 200-day average again, while ETHUSD has surpassed $4000.
If we went deeper into the reasons, the rise of the two largest cryptocurrencies was helped by the performance of stock indices , which received support from buyers yesterday, indicating continued demand for risky assets and a desire to buy on downturns.
Despite this morning’s positivity, it is worth noting that the optimism looks somewhat fragile and has little explanation for the fundamentals. Under such conditions, the situation could turn abruptly in a matter of hours, so a fix above $4000 for Ether and $48000 for bitcoin today should be considered a more reliable signal.
This article was written by FxPro’s Senior Market Analyst Alex Kuptsikevich.