With expectations of higher prices, bitcoin advances

Cryptoasset has retreated significantly from its 50-day moving average, which is seen as an important manifestation of bearish strength

Bitcoin advanced today, recovering from recent losses, in a session in which it came to operate under pressure from risk aversion in the market, which brought down the stock market in the United States.

In turn, at the end of the trading session the asset advanced, in a scenario in which investors remain confident of a potential for higher values.

At 5:05 pm (Brasília time), bitcoin was trading up 1.28%, at US$64,801.79, while ethereum was up 1.10%, at US$3,159.49, according to Binance.

Israel Buzaym, communications director and cryptocurrency expert at Bitybank, notes a slight recovery in bitcoin, which rose from the $61,000 recorded this month.

However, Buzaym highlights that this value is still below investors’ expectations and points to the anxiety observed among some. It also highlights short-term volatility while the fundamentals of the Bitcoin network remain unchanged.

Bitcoin has pulled back significantly from its 50-day moving average, which is seen as an important manifestation of bearish strength. “Most cryptocurrency traders clearly picked up on this signal,” said Alex Kuptsikevich, an analyst at brokerage FxPro.

Bitcoin has repeatedly failed to reclaim its mid-March all-time high near $74,000, although there is confidence about the long-term prospects for the token – especially following the “halving” that occurred last week.

A programmatic change to bitcoin’s monetary policy, the halving halved token issuance, restricting new supply in a move that was expected to support prices as long as demand remained constant.

The catalysts moving the stock market also promise to be pivotal for cryptocurrencies, especially as bitcoin has shown itself to be broadly correlated with the S&P 500 and Nasdaq indices, as well as broader risk sentiment.

With information from Dow Jones Newswires It is Estadão Content