According to a TradingView chart, Bitcoin (BTC) rebounds from intraday lows of $41,138 to reach highs of $42,528 seen at press time. The altcoin market was also showing signs of recovery as tokens such as Terra (LUNA), Monero (XMR), Fantom (FTM) and FTX token (FTT) are trading in the green per CoinMarketCap data.
This falls in line as U.Today earlier reported of a possible incoming price rise for the altcoins, Monero inclusive. The reason is a rise in overleveraged shorts and average negative funding rates.
Bitcoin's recent rebound comes despite surging bond yields. Bond yields had soared on expectations of impending rate hikes by the Federal Reserve, earlier putting pressure on Bitcoin and the equities market. The 10-year Treasury yield rose to 1.9%, suggesting investors' bet on rate hikes. For the first time in two years, the two-year Treasury yield, which represents short-term interest rate expectations, surpassed 1%.
According to cryptoanalysts, the $42,500 level remains the critical barrier bulls must conquer to proceed further. Alternatively, Bitcoin's most critical support level, is between $38,900 and $40,200, according to IntoTheBlock. If BTC wants to avoid a sharp correction toward $30,000, this important support must hold, it says.
Retail interest spike
On-chain analytics firm Glassnode reports that the number of Bitcoin Addresses Holding 0.1+ Coins just reached an all-time high of 3,312,936. This might suggest a spike in retail interest.
Many retail investors seem to have taken advantage of the Bitcoin flat price action to "buy the dip." Bitcoin trades at $42,425 at press time.