After a tough month for cryptocurrencies , Bitcoin (BTC) rebounded on Sunday evening, hitting a seven-day high of $30,723. Although the correction brought the coin down to $30,594, according to CoinMarketCap , Bitcoin is up 5.5% over the last day.
Despite recent positive sentiment, Coinglass data shows that Bitcoin is down 18.63% in May after losing 17.3% in April.
The main question now is whether the industry’s largest asset can maintain a positive momentum.
A report by CoinShares showed that the recent collapse of the Terra stablecoin forced investors to switch to bitcoin, with 39% of respondents saying that the benchmark cryptocurrency has the most attractive growth prospects.
“Bitcoin has just spent eight consecutive weeks in the red and has been technically oversold at levels we traditionally only see at the bottom of a bear market,” Hayden Hughes, CEO of social media trading platform Alpha Impact, told Bloomberg.
The rest of the cryptocurrencies on Monday morning also mostly remained in the green zone. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has surged 6.6% over the past day and is currently trading just above $1,900, according to CoinMarketCap.
This was not enough to put ETH in the green zone on the weekly chart – over the past seven days, the coin is still falling by 7.35%.
In the rest of the top 10 cryptocurrencies, Cardano (ADA) is the biggest gain on the day with 11.8%, followed by Solana (SOL), which is up 8.3% in the last 24 hours.
Like Ethereum, both ADA and SOL were in the red last week, down 5% and 12.4%, respectively.
The rise came amid a sharp rise in Asian stocks amid reports of easing coronavirus restrictions in China’s major cities. Traders believe that the reopening of the economy will trigger an increase in consumer spending, boosting company earnings in the coming weeks.
But some analysts believe that the recovery of cryptocurrencies may take longer than expected.
“It will be premature to talk about a bullish counteroffensive until bitcoin breaks above $30.6k, its horizontal resistance line since mid-May. The divergence in the dynamics of stocks and cryptocurrencies was noticeable last week, which highlights the weakness of the crypto market,” explains Alexey Kuptsikevich, Senior Market Analyst at FxPro.
The fall of Bitcoin and the collapse of the LUNA token will negatively affect algorithmic stablecoins
