Why Did Bitcoin Spike Above $40K? ETH Nears $3K; Dogelon Mars Rebounds 20%, Here Is What Analysts Say

Bitcoin rose to intraday highs of $40,600 for the first time since Jan. 21, in a shift from the bearish mood. At the time of publication, BTC was trading at $40,397, up 10% in the last 24 hours as per to CoinMarketCap data. Bitcoin has managed to stage a sharp recovery after dipping earlier today due to unexpectedly strong U.S. jobs data. Ethereum is also up 12.63%, inching closer to the $3,000 level.

The market seems to have received a bullish push when Marathon Digital Holdings, a Bitcoin mining company in North America, said Friday it had increased its holdings of the cryptocurrency to about 8,595 BTC ($338 million).

In the last 24 hours, several altcoins are notching gains between 6% and 20%. Solana (SOL, +13.57%), Avalanche (AVAX, +12.94%), Near Protocol (NEAR, +16.11%), UNUS SED LEO (LEO, +28.62%), Monero (XMR, +12.33%), Convex Finance (CVX, +15.2%), BORA (BORA, +15.42%), Ontology (ONT, +14.66%), JUST (JST, +37.19%), DigitalBits (XDB, +24.15%), JOE (JOE, +20.5%) are significantly up in the last 24 hours.

Donelon Mars (ELON), a dog coin inspired by Elon Musk, and his love for travel are now up 20% in the last 24 hours at a present price of $0.0000009331, as per CoinMarketCap data.

Courtesy: Santiment

The majority of altcoins have managed to recoup nearly all losses in the past 7 days and were up since the past week. On-chain analytics, Santiment notes the outstanding performance of selected altcoins over the past 7 days.

”Despite Bitcoin staying flat over the past week, many altcoins have quietly crept back and inched toward their pre-slide prices. Particular standouts over the past 7 days include MANA (+22%), XTZ (+31%), MKR (+32%), QNT (+53%), and CCXX (+65%)”.

Here Is What Analysts Say

Lex Moskovski, a crypto trader notes that Bitcoin shorts liquidations have started to roll in. According to CoinGlass, in the last 4 hours, short liquidations for Bitcoin have reached $123.37 million.

Bitcoin Shorts Liquidations, Courtesy: Coinglass

Some analysts flagged the possibility of a short squeeze as a catalyst for the recent Bitcoin price increase. Jason Deane, a Bitcoin analyst at Quantum Economics, said that “bitcoin’s recent moves do seem to have coincided with the latest U.S. jobs report, and this may simply have acted as a catalyst for an overdue market move.”

Daniel Kukan of Crypto Finance AG says “Several attacks on the downside have not been successful anymore as the risk has been taken out,”. Kukan states his next upside targets fall in the $42,000 to $43,000 range while envisaging market support at $33,000 – or $28,000 in the worst case.

Cryptoanalyst, Michael Van de Poppe says, ”Great move of Bitcoin, but stocks are dropping down & we didn’t crack that range between $40.5-41K. Important to keep an eye on levels, instead of the downtrend”.

Image Credit: Coinglass, Shutterstock