Bitcoin prices recovered today, rallying close to 5% after falling below $3,500 over the weekend.
The world’s largest digital currency by market capitalization (market cap) reached as much as $3,693.80, CoinDesk bitcoin price data showed.
This price point represented a roughly 4.8% gain from the start of the day, additional CoinDesk figures revealed. Today’s upward movement took place after bitcoin dropped to as little as $3,480.83 on Sunday.
Several other cryptocurrencies also moved higher today, with ether, XRP, EOS and bitcoin cash up approximately 12.6%, 5.6%, 10.5% and 9.7% in the last 24 hours at the time of report, additional CoinDesk figures revealed.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“This bounce seems to have a strong case in both technical and fundamental analysis,” said Mati Greenspan, senior market analyst for social trading platform eToro.
Greenspan first weighed in on the technical aspect, stating that “The support area between $3,000 and $3,500 is holding, just as we’ve been discussing these last few months.”
Jon Pearlstone, publisher of the newsletter CryptoPatterns, also weighed in on this particular subject.
While bitcoin’s price struggled with the $3,500 over the weekend, it rose above this key price level on “solid volume,” which represented “a successful retest of key support,” he stated.
Further, this development is “likely to encourage buyers to come in the market,” added Pearlstone.
It could cause bitcoin to “test higher resistance levels at $4000 and above,” he stated.
Bakkt, a digital asset exchange owned by the same company that operates the New York Stock Exchange, announced its first acquisition.
The financial institution will purchase certain assets of a futures commission merchant named Rosenthal Collins Group.
Greenspan spoke to this development, stating that:
“Bakkt made a strategic acquisition today, which demonstrates their resolve to move forward.”
Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare, also spoke to this announcement, stating that it was “very bullish” for the digital currency markets.
Joshua Frank, cofounder of cryptocurrency analytics platform TheTIE.io, provided some insight into the sentiment of traders, based on information gathered from social media platforms.
“Interestingly, we saw that the sentiment of four of the five other largest cryptocurrencies: XRP, Ethereum, Bitcoin Cash, and EOS moved positive prior to the jump this morning. In the case of Bitcoin sentiment was actually pretty negative during the increase.”
He also spoke to Twitter activity:
Tweet volumes across most coins remain close to average. Bitcoin’s tweet volume is up 2% vs. its 30 day moving average, while XRP’s is down 10%. The most notable coin which experienced an increase in conversation levels is TRON which saw a 39% spike in Twitter conversations today. It is also the best performing of any of the major cryptocurrencies up 18%. 93% of Tweets mentioning Tron and to #HODL are positive today. Binance Coin also saw an 85.58% spike in tweet volume today which has accompanied its 7.29% increase in price.
Disclosure: I own some bitcoin, bitcoin cash and ether.