Bitcoin, Ethereum, Dogecoin On The Rise — Sorry To Play Debbie Downer But Here's Why These Analysts Refuse To Sound The All-Clear Alarm

Major coins traded higher over 24 hours as the global cryptocurrency market cap rose 1.9% to $1.8 trillion.

Metaverse play Decentraland (MANA) was the top 24-hour gainer, according to CoinGecko data, up 14.3% to $2.79 in the period. For the week, it has shot up 33.5%.

Other coins that saw notable gains were Nexo (NEXO) and Terra (LUNA). NEXO and LUNA rose 14% and 12.4% respectively to $51.27 and $4.64 over a 24-hour time frame.

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Bitcoin managed to outdo the S&P 500 over the last week in terms of gains, according to GlobalBlock analyst Marcus Sotiriou. This is despite headwinds in the form of a hawkish Federal Reserve.

“Even though the Federal Reserve Chairman, Jerome Powell, was hawkish at the FOMC meeting last Wednesday, $670 million of Bitcoin was removed from exchanges the next day, as whales continue to buy in this price range,” said Sotiriou, in an emailed note.

Financial market data and content platform Santiment noted in a tweet Monday that 40,785 BTC, worth approx $1.56 billion, were moved from exchanges in the past week. 

40,785 $BTC were moved away from exchanges in the past week. This was the highest week of #Bitcoin exchange outflow since the 2nd week of September. The continued trend of coins moving to cold wallets is historically good for long-term price movements. https://t.co/NsVJGWZkIK pic.twitter.com/Pg37mqfFVr

— Santiment (@santimentfeed) January 31, 2022

Monday’s upwards movement by Bitcoin comes ahead of February, a traditionally favorable month for the apex coin’s price action. 

The apex coin rose as the dollar took a fall with the dollar index, a measure of the greenback's strength against a basket of six currencies, declined 0.7% on Monday, according to a Reuters report.

Bitcoin’s newly-found momentum has enthused some analysts even though they remain cautious. 

Pseudonymous analyst Kaleo pointed to BTC resistance at $39,000 levels and said if it broke through, it might “might end up with a solid month or two of bullish price action across the market carrying us back into the low 50s.”

Bitcoin is a bit trickier. Still basically just watching this resistance level (currently around $39K). If we manage to break through, might end up with a solid month or two of bullish price action across the market carrying us back into the low 50s. pic.twitter.com/SVqYPH4l3b

— K A L E O (@CryptoKaleo) January 31, 2022

Amsterdam-based cryptocurrency analyst Michaël van de Poppe tweeted that Bitcoin’s reversal is “not confirmed at all.” He said it is still fighting resistance beneath previous support at $41,500.

Good move of #Bitcoin today, reversal not confirmed at all.

It's still fighting resistance and it's still beneath the previous support at $41.5K.

Good ROI to make on some short trades though, that's definitely the case.

— Michaël van de Poppe (@CryptoMichNL) January 31, 2022

Meanwhile, the adverse macroeconomic environment has not yet dissipated.

“Powell made it clear that supply chain issues are indeed prominent, meaning that global markets may remain fearful going into the first rate hike planned for March 16th,” said GlobalBlock’s Sotiriou.

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Photo: Jose Rodrigo Safdiye/Benzinga