Bitcoin bounce takes cryptocurrency to $45,500 as focus turns to future support retest

Bitcoin (BTC) price hit new multi-week highs above $45,000 on February 8th as the comeback of the largest cryptocurrency continued.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: TradingView

The $40,000 level is becoming a popular target for retesting

Data from Cointelegraph Markets Pro and TradingView showed this The BTC/USD pair hit $45,500 on Bitstamp in its last rally before consolidating.

The volatility was once again evident as The pair traded at $1,000 in an hour and is hovering around $44,800 at the time of writing.

Bitcoin bounce takes cryptocurrency to $45,500 as focus turns to future support retest
Bitcoin bounce takes cryptocurrency to $45,500 as focus turns to future support retest

However, fears of a major correction were unfounded on the day, despite theories that the $40,000 level could see a retest.

As Cointelegraph reported, Bitcoin’s recent moves mark a break from a downtrend that’s been in place since the all-time highs set in November.

The price of BTC, buoyed by a similar readout of its Relative Strength Index (RSI), it’s nearing its annual opening price, just over $46,000.

The analysis of the fuel behind the progress of the last few days, the on-chain analysis resource Material Indicators found traders piling into high volume while whales, which had been buying at prices around $38,000, are now neutral.

“The driver of the rally was orders between $10,000 and $100,000 (in green) which made up almost all of the CVD and have obviously been TWAP’s since the bottom. Whales stayed flat or were sold at dips,” summarized.

On the downside, the news broke the news on Monday US regulators had approved a new form of exchange-traded funds focused on bitcoin mining.

“Just as the move down has delivered no dead-cat bounces or clean retests, so far this move up has delivered shallow dips and no clean retests, causing marginalized capital to sweat and may have to fight”, added a positive William Clemente on the recent price development.

XRP leads the gains of the top ten altcoins

Altcoins, meanwhile, have been a little slower, when the Bitcoin rally stole the show.

Ether (ETH), the largest altcoin by market cap, is up 2.8% versus Bitcoin’s 5% over the 24-hour period, with only Cardano (ADA) and XRP visibly outperforming the majority.

XRP/USD (Bitstamp) 1-day candlestick chart. Source: TradingView

The latter posted gains of over 16% on the day, marking a clear reversal and pave the way for an attack on the $1 mark.

The ADA/USD pair rose 6.3% to $1.23, the highest since Jan. 20.

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