Sophia's Blog

Sophia's Blog

Bitcoin rally Towards $34,000

The second half of the week continued to rally and recover previous losses as the global crypto market reached $1.38 trillion with a gain of 2.8 percent as of 10 am IST today. This comes after an earlier weekly low of $1.16 trillion. Trade volume jumped by 11 percent over the day to lend support to this rally.

After a successful retest of the $31,900 support on Friday, Bitcoin (BTC) marched forward as the bulls stepped in to push BTC past the $33,500 short-term resistance level. BTC ended the day near $33,700 gaining 3.3 percent in the last 24 hours with the trade volume registering a significant 15 percent rise.

The extended bullish sentiment post ‘The B-Word’ event headed by Elon Musk, Jack Dorsey, and Cathie Wood helped BTC to stay resilient above the $32,000 levels before breaking the first resistance level of $32,600. BTC is currently aiming to break the $34,000 level which brings $36,000 in play thereafter. The rally has also been aided by the expiry of $330 million worth of BTC options on Friday.

Ethereum (ETH) remained above the $2,000 mark for the second consecutive day. ETH’s rally gained momentum post-midnight to close the day at $2,130, with a gain of 2.8 percent. As ETH nears its EIP-1559 update in a fortnight, a wave of renewed optimism is prevalent among the buyers. ETH tested resistance at $2,080 while steering clear of the support level at $1,960.

Post the recent sell-off, investors hope that major altcoins find their way upwards, providing momentum to the overall market still dominated by BTC. Uniswap (UNI) was the biggest gainer today with a 5 percent increase. Top altcoins like Cardano (ADA), Chainlink (LINK), Polygon (MATIC) gained by 1 to 3 percent, while Stellar (XLM) and Polkadot (DOT) took minor losses.

The buzz of the week belongs to Axie Infinity (AXS), a play-to-earn gaming token, which has seen a 120 percent gain in the last week and has skyrocketed into the top 40 cryptocurrency lists. AXS token gained by a substantial 45 percent today.

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