Back To Risk-On: Cryptocurrencies Rebound After Plunge

Bitcoin Is Moving Towards The $50,000 Level

Yesterday, Bitcoin and Ethereum found themselves under material pressure amid global market sell-off which was triggered by fears over the spread of Omicron.

Today,  they are leading the rebound as risk appetite increases. There are no specific catalysts for today’s strong move, but most markets are trading in the positive territory.

It is not clear whether Omicron will trigger a real sell-off in the markets which are supported by strong liquidity and low rates. While global central banks have started to cut this support, it remains a significant positive catalyst.

In addition, there are some good news – Moderna has already announced that it will soon make a booster for Omicron. The company stated that it expected no problems as it needed to make minor adjustments for the new vaccine.

Bitcoin Tries To Get Out Of The Downside Channel While Ethereum Consolidates Near $4,000

Bitcoin is currently trying to move out of the recent downside channel. RSI remains in the moderate territory, and there is enough room to gain additional upside momentum in case the right catalysts emerge.

The nearest significant resistance level for Bitcoin is located at the 20 EMA at $49,600. A move above this level will push Bitcoin towards the resistance at $52,000. In case Bitcoin manages to settle above the $52,000 level, it will head towards the resistance at the 50 EMA which is located near $53,000.

On the support side, the nearest support level for Bitcoin is located at $48,000. In case Bitcoin declines below this level, it will get back into the previous downside channel which will be a disappointing development for the bulls.

Ethereum managed to get back above the $4,000 level and is moving towards the 50 EMA at $4,070. A move above the 50 EMA will signal that Ethereum will try to develop additional upside momentum.

The next resistance level for Ethereum is located at the 20 EMA at $4,125. In case Ethereum gets above this level, it will head towards the resistance at $4,200.

On the support side, a move below the $4,000 level will push Ethereum towards the support at $3,900. In case Ethereum declines below $3,900, it will head towards the next support at $3,715. A successful test of this support level will push Ethereum towards the support at $3,580.

For a look at all of today’s economic events, check out our economic calendar.