Bitcoin was finally showing some signs of life Monday after being stuck below the key $30,000 level for four days, and other cryptocurrencies were following suit.
The largest cryptocurrency climbed for a third day, breaking above $30,000. It jumped as much as 4.4% to $30,441.43. While Bitcoin’s dominance has been increasing recently, some altcoins were outperforming, with Avalanche up 6.6% and Cardano gaining 8.6%.
Bitcoin has been stymied in recent months as the Federal Reserve and other central banks have pivoted toward rate-hiking cycles amid stubbornly high inflation. The collapse of the Terra ecosystem has also hurt sentiment in digital assets. Concerns among market watchers increased into the weekend as the record-high correlation with the Nasdaq 100 — illustrating its behavior like a risk asset — tailed off as tech stocks rallied.
“This is the type of de-correlation nobody wanted,” said Antoni Trenchev, co-founder and managing partner of crypto lender Nexo.
Bitcoin’s sideways churn over the last two weeks inside of a so-called “pennant” ended with prices breaking lower late last week. Bears will continue to have the upper hand unless the token reclaims $30,200, according to the pattern — and any break below $28,000 could see $25,000 coming back in focus. A descending-triangle pattern indicates that anything below about $25,400 could put the 2017 peak — just below $20,000 — into play.