Bitcoin rallies above US$30,000 as crypto complex stages comeback

BITCOIN was finally showing some signs of life Monday (May 30) after being stuck below the key US$30,000 level for 4 days, and other cryptocurrencies were following suit.

The largest cryptocurrency climbed for a third day, breaking above US$30,000. It jumped as much as 4.4 per cent to US$30,441.43. While Bitcoin’s dominance has been increasing recently, some altcoins were outperforming, with Avalanche up 6.6 per cent and Cardano gaining 8.6 per cent. 

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 behaviour 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 2 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 US$30,200, according to the pattern - and any break below US$28,000 could see US$25,000 coming back in focus. A descending-triangle pattern indicates that anything below about US$25,400 could put the 2017 peak - just below US$20,000 - into play. BLOOMBERG