Bitcoin approaches the $44,000 mark while U.S. stocks recover from their most significant three-month decline.
The overall cryptocurrency market surpassed $1.7 trillion on Wednesday, marking its first climb since May 2022. According to Business2Community experts, Bitcoin approached $44,000 early Thursday, recovering slightly from recent losses linked to a dip in U.S. stocks.
The S&P 500’s 1.42% decline affected assets like bitcoin, prompting analysts to suggest an overdue correction due to overbought market signals and options expiration pressures.
Despite the market plunge, tokens like SOL and AVAX rebounded in early Asian hours, with SOL rising 15% in 24 hours and over 55% in a multi-week rally.
Optimism prevails for bitcoin due to expected ETF approval in the U.S. and the upcoming 2024 halving event, historically linked to crypto market bull runs.
Yet, indicators suggest a cooling period after a month-long rally, hinting at lower volatility around the holiday season. Rachel Lin, SynFutures‘ CEO, noted a consolidation trend for bitcoin and ether, mentioning a cooling Relative Strength Index (RSI) compared to its highly overbought state two weeks prior.
Bitcoin’s weekly RSI, previously at 82, now stands around 75, signaling a pullback from extreme levels.
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