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Bitcoin has reclaimed the $28,000 mark after reaching an almost four-week low, setting lows of $26,985 on April 24. After remaining below $28,000 for five days, Bitcoin took the rest of the market on an unexpected upward trip.
At the time of writing, Bitcoin was up 5% in the last 24 hours at $28,701. If Bitcoin sustains its recent climb, the lead asset might be on track to mark its second day of gains since its rebound from April 24 lows.
Some narratives might have helped fuel Bitcoin's rebound, although the exact cause of the increase remains unknown. The rebound is supported first by technical factors. Bitcoin tested a closely watched level — its daily MA 50 — which some analysts suggest remains a decisive level for Bitcoin's price growth.
Certainly, Bitcoin rebounded after a test of this key level and rode higher, reaching intraday highs of $28,836 at press time.
On-chain analytics firm Santiment points to high social dominance for Bitcoin, which happens during market fear. This, it says, can cause prices to rebound quickly.
🫣 With #Bitcoin continuing to stay relatively flat while #altcoins fall, the percentage of discussions revolving around $BTC remain well above average. Generally, high social dominance for Bitcoin happens during market euphoria or (in this case) fear. Prices can rebound quickly pic.twitter.com/6Ewub6en1h
— Santiment (@santimentfeed) April 25, 2023
Santiment also reported that crypto saw signs of life minutes after U.S. stock markets wound down their rough day. It notes that price increases without reliance on the S&P 500 are ideal for the market's independent sustainability.
Less than 24 hours after beleaguered First Republic Bank disclosed at its first-quarter earnings presentation on Monday that it had lost $100 billion in deposits, rekindling concerns about the viability of the banking sector, BTC also started to trend upward.
This year, Bitcoin has increased by roughly 65%, but the upward trend slowed in the last two weeks since it broke beyond $30,000 for the first time since June.
Arman Shirinyan
Alex Dovbnya
