Bitcoin rally back above $ 40,000 to see some recovery signs

Bitcoin recovered above $ 40,000 on Tuesday, regaining some ground after falling seven days from the past eight.

The largest cryptocurrency rose as much as 0.8% to $ 40,146, gaining steam at noon in Hong Kong after falling 1.5% earlier in the session. Ether also rallied around the same time, reaching over $ 3,000. Altcoins like Solana and Cardano have been even lower over the past 24 hours, according to prices from CoinGecko.

The top tokens are now just above levels that are considered key by technical analysts.

“Both Bitcoin and Ethereum failed in resistance at their 200-day moving averages (just like the Nasdaq 100) and must now hold support at $ 40,000 and $ 2,900,” Rich Ross, a technical strategist at Evercore ISI, said in a note Monday. .

Bitcoin and the broader crypto market have struggled in recent weeks as the Federal Reserve began to walk rates amid stubbornly high inflation and persistent geopolitical unrest. US inflation is likely to have accelerated to 8.4% in March, the fastest pace since early 1982, economists surveyed ahead of data forecast Tuesday.

The Federal Reserve may need to raise interest rates “significantly” higher than it now expects to cool an overheated U.S. economy, Goldman Sachs Group Inc. This is what Chief Economist Jan Hatzius said on Friday.

Bitcoin “is still consolidating into a triangular pattern that runs back to mid-January,” said Jeffrey Halley, senior market analyst at Oanda. “The lower and upper limits today are $ 36,500 and $ 47,500,” he said, meaning Bitcoin was well within its reach.

A break above or below those support or resistance levels could lead to a $ 18,000 move in both ways, Halley added.