Investing.com – After a time lag compared to other markets, Bitcoin is riding the wave of risk appetite, with the cryptocurrency peaking at $32,190 last night, the highest since May 10.
Yesterday alone, Bitcoin therefore crossed the psychological thresholds of $30,000 and $31,000. As of this writing, at 5:30 a.m., the has corrected slightly from yesterday’s lows, and is worth $31,640, up almost 5% over 24 hours, and more than 8% over a week.
Of note, the rally in Bitcoin and cryptocurrencies in general since yesterday comes on the heels of a rise in Asian equities, as reports indicate that major Chinese cities have begun easing coronavirus restrictions after months of strict lockdown.
Traders have been placing bets that the reopening of the economy could trigger an increase in consumer spending – which could boost corporate earnings in the coming weeks and could signal a bottom for stocks in the region.
To a lesser extent, European equities also posted a positive day yesterday.
On the other hand, it will be recalled that the US markets were closed yesterday due to a public holiday. However, US futures are slightly in the red in the first trade of the week since last night, which could put a brake on Bitcoin’s progress.
Technical analysis and key thresholds for Bitcoin
From a graphical point of view, it should be noted that the rise of Bitcoin since the beginning of the week allows it to extract itself from a phase of indecision which has lasted for about two weeks.
However, BTC/USD is now facing a resistance zone consisting of the psychological threshold of $32,000, and the highs of May 10 and 11 at around $32,200 and $32,650, not counting the psychological threshold of $33,000 slightly above.
Thus, after an 11% rally in 24 hours between Sunday evening’s low at $29,000 and yesterday evening’s peak, a correction could take place. In this context, the psychological threshold of $31,000 will be the first important support to take into account.