Cryptocurrencies are showing resilience.
Bitcoin (BTC), the largest crypto by market capitalization, rose 3% in afternoon trading on April 4 even as the blue-chip Dow Jones Industrial Average fell more than 2,000 points amid an intensifying selloff in stocks around the world.
BTC and other cryptos such as Ethereum (ETH), Solana (SOL) and Dogecoin (DOGE) had been sliding lower in recent days alongside equities. But they appeared to bottom and reverse higher on the afternoon of April 4. SOL was up 6% and DOGE was up 8% in afternoon trading.
Holding Above $80K
After falling as low as $81,000, Bitcoin was able to hold above the key support level of $80,000 and was trading right around $84,000 by the afternoon of April 4. The rebound comes despite signs in recent days that BTC was nearing a bearish “death cross” technical pattern that typically signals a sharp decline.
Analysts attribute the recovery in crypto prices to demand among retail investors remaining strong. BTC has traded in a range of $80,000 to $90,000 for the past month. However, Bitcoin’s price is down 23% from an all-time high of just over $109,000 reached on Jan. 20 of this year, the date of U.S. President Donald Trump’s inauguration.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 16.07% in the last 12 weeks.
