3 Reasons Bitcoin Recovered by 8% Overnight | Empirex Capital

3 Reasons Bitcoin Recovered by 8% Overnight

The price of Bitcoin (BTC) recovered by more than 8% overnight on March 1 following a steep drop during the weekend. There are three reasons the price of Bitcoin recovered swiftly in the past 24 hours. They include the recovering global stock market, rising Coinbase premium, and a typical weekend reversal.Rising Global Stock Market Coincides with Weekend Reversal The global stock market has started to recover as soon as the market opened on Monday, March 1. The stock market slumped over the past week due to the rising Treasury yield curve. As the bond market rallied, risk-on assets, such as stocks, saw a pullback. Holger Zschaepitz, said the global risk markets started the week strongly as bond yields eased. He said: Global risk mkts start the week on the front foot as bonds rally. Australia's 10y yield fell 25bps, German 10y drops 3bps ahead of inflation data. US 10y steady at 1.41%. Following last week’s bloodbath, easing in bond yields is big relief. Gold gains to $1757. #Bitcoin at $46.8k. Although Bitcoin is considered a safe haven asset and a store of value, it often moves in tandem with the risk-on market

In the past 12 hours, the Coinbase premium rebounded to around $100. Prior to the reversal, Coinbase was selling at a lower price than Binance, which meant there was strong selling pressure coming from the U.S. The futures funding rate resetting signaled that the market became less overheated. This coinciding with the Coinbase premium returning was a solid signal of improving appetite for Bitcoin, particularly in the U.S. When the price of Bitcoin trades lower on Coinbase, it is a sign of short-term bearishness because the U.S. dollar pair naturally trades higher than Tether. In the foreseeable future, based on the recovering stock market trend and the consistently high Coinbase premium, the crypto market has a good chance of rebounding this week. Whale clusters from Whalemap also show that $46,000 and $56,000 are the key support and resistance levels in the short term. Since Bitcoin rebounded strongly from $46,000, there is a high probability that it could rally to $56,000 in the next impulse wave

Created on 4th Mar 2021