Bitcoin Holds Near Recent Peak, Showing Resilience to Earlier Selloff

by webmaster

Bitcoin and other cryptocurrencies are showing resilience as they edged lower on Friday, remaining close to their recent peak despite a selloff earlier in the week. This pattern of dips and subsequent dip-buying suggests a positive momentum for digital assets.

The price of Bitcoin has only dropped by less than 1% in the past 24 hours, reaching $42,750. The cryptocurrency had previously reached above $43,000 but fell short of its 20-month high of $44,000, which was achieved a week ago. Although Bitcoin has rallied by more than 50% in the last two months, it continues to experience volatile swings within its overall trend. It briefly fell below $41,000 earlier this week before bouncing back.

According to Bob Ras, co-founder of the digital asset exchange Sologenic, “It’s clear that Bitcoin is in a bullish uptrend. Dips are not causing substantial pullbacks as expected after significant rallies. Instead, the dips are being bought up by what appears to be large-scale buyers. The recent long liquidation briefly shook the market, but then a consolidation occurred, and now we are seeing strong upwards momentum again.”

Traders are eagerly awaiting the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by U.S. regulators. This approval could bring a new wave of investor interest in cryptocurrencies. However, it’s important to note that the macro backdrop for risk assets has also played a role in boosting crypto prices. Particularly, expectations of multiple interest rate cuts by the Federal Reserve next year have contributed to Bitcoin’s gains, alongside the Dow Jones Industrial Average and S&P 500.

In addition to Bitcoin, Ether—the second-largest cryptocurrency—dropped by 1% to $2,270. Smaller tokens or altcoins were weaker, with Cardano and Polygon both sliding by 3%. On the other hand, memecoins such as Dogecoin and Shiba Inu only experienced a 1% decline.

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