Bitcoin rebounds 25% after “Black Monday” drop

Global markets are returning swiftly after the recent “Black Monday” turmoil. The U.S. and Asian stock indices are showing robust gains, while the cryptocurrency market sees a surge in risk appetite, led by Bitcoin’s impressive 25% recovery.

US and Asia markets surge

• The global fear index (VIX) fell from 28 to 23.80 in 24 hours.
• U.S. indices experienced notable rises:
  • S&P 500 increased by 1.55%.
  • Dow Jones Industrial Average gained 2.90%.
  • Nasdaq surged by 2.87%, with NVIDIA shares climbing 6%.
• Positive trends continued in Asian markets:
  • Japan’s Nikkei index rose over 1.5%.
  • Taiwan’s index saw gains surpassing 3%.
• USD/JPY pair exceeded 147.00, reducing risks for “carry trade” positions.

Cryptocurrency market revival

• Bitcoin (BTC) dropped to $49,500 on Monday but soared 25% to reach $62,700 within 4 days.
• As of August 9, 2024, BTC is stabilizing around $61,500, with the 200-day moving average at $61,800 as a critical resistance point.
• Ethereum (ETH) also experienced a 25% increase, climbing from $2,100 to $2,725. It is currently trading near $2,685, with a crucial trend resistance at $2,750.
• Other altcoins also saw daily gains ranging from 5% to 10%.

BTC analysis and expectations

• Analysts speculate on whether Bitcoin’s rise will continue. They highlight the importance of surpassing and sustaining above the 200-day moving average at $61,800 for a positive outlook.
• Should the upward trend persist, the $64,000-$65,000 range is identified as the next resistance zone, with $60,000 being the initial support level.

ETH analysis and expectations

• Ethereum must break the $2,750 resistance for further gains. Its 200-day moving average stands at $3,225.
• The cryptocurrency market remains volatile, with substantial fluctuations expected in the near term.