Bitcoin Starts Monday up, Relief Rally Coming? 

Bitcoin may have bottomed out after a strong start to the new week. Bitcoin bulls are digging up their bull memes again, as BTC is up over 5% to start the week over the last 24 hours and trades at $30,600.

Bitcoin’s consecutive downward trend appears to have been broken this week.

Following several red Mondays that saw Bitcoin get hammered in the Asian session even before the opening of US markets, BTC is off to a good start this week. This strong start may be what’s needed to stop the proverbial bleeding. Last week, crypto traders experienced not the kind of decoupling from equities they were looking for. The Nasdaq 100 bounced off its 11,600 low for a 1,000-point rebound, while Bitcoin barely managed to hold onto its level. Altcoins continued to bleed and ETH is down 8% over the last seven days, with other layer-ones like SOL (-14%) and AVAX (-15%) still getting the stick.

The mood on Crypto Twitter has been slightly more bullish, with market experts like Ptnoshi seeing some room for a bear market rally.

Indeed, the dollar index DXY reversed from recent record highs, allowing Bitcoin to recoup at least some of its heavy losses in recent weeks. With inflation and Fed tightening at least temporarily priced in, a lot of the short-term unknowns seem resolved. This would also explain last week’s equity bounce, and Bitcoin may follow with a lag here.

CryptoQuant CEO Ki Young Ju also thinks the bottom is in at this point:

“$BTC is getting close to the cyclic bottom. Now UTXOs over 6 months old take 62% of the realized cap. In the 2020 March great sell-off, this indicator reached 62% as well.”

How much bitcoin can rally may still depend heavily on the stock market, and bulls should not be overconfident. The upside is capped at 33,000, according to traders, although bitcoin is hoping to use U.S. public holiday on Monday to start the week strong.

It’s time to end the losing streak.