Bitcoin Nears $60K as Crypto Bounce Accelerates, but Recovery Might Be Choppy

Cryptocurrencies continued their rally on Thursday, with Bitcoin {{BTC}} approaching $60,000 for the first time since last weekend’s carnage.

Bitcoin is up 6.4% in the last 24 hours and is currently changing hands at $59,500. Ether {{ETH}} has gained 8.8% in the same period, breaking its bearish streak against BTC by surpassing $2,600.

The broad market index CoinDesk 20 Index also saw similar gains, with altcoin majors solana {{SOL}}, near {{NEAR}}, avalanche {{AVAX}} and filecoin {{FIL}} all up nearly 10%.

Ripple’s XRP was the top performer, rising 22% on optimism about a new court ruling in a long-running case that has been affecting the token’s price. Investors were optimistic after a U.S. court ordered Ripple to pay a $125 million fine for violating securities laws, a much lower penalty than the $2 billion sought by the Securities and Exchange Commission.

Read more: XRP Up 17%, Outpacing Bitcoin Gains as Ripple-SEC Lawsuit Concludes

Market observers have highlighted two positive developments that have supported the rise in Bitcoin and cryptocurrency prices.

A U.S. judge on Thursday approved FTX and sister trading firm Alameda Research to pay $12.7 billion to creditors, with many hoping some of the funds will flow back into crypto markets as former users reinvest trades into digital assets.

Meanwhile, Russian President Vladimir Putin signed a bill legalizing crypto mining in the country. “Russia appears to be moving to keep up with the US. Bitcoin FOMO (fear of missing out) at the country level is increasing,” said Ki Young Ju, CEO of crypto analytics firm CryptoQuant. “Their introduction will increase hashrate, strengthen network foundations, and diversify miner policies.”

With today’s gains, Bitcoin has turned positive, completely reversing its weekly candle that dropped to $49,000 on Monday morning.

While there is still plenty of time until the weekly close on Sunday, if BTC finishes the week around current prices, it will form a hammer candlestick, a bullish chart pattern in technical analysis that often appears at the bottom of downtrends and signals a trend reversal.

However, some analysts have warned that future price movements could be volatile.

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Cubic Analytics founder Caleb Franzen noted that BTC has reached the 200-day moving average cloud, which could act as resistance that could halt the rally.

“I expect we can break above that level, but I don’t rule out the fact that it could also act as resistance,” he said. “If we break it and close above it, it would be bullish.”

K33 Research analyst David Zimmerman noted that it is rare for cryptocurrencies to recover in a straight line after capitulation events like Monday’s crash.

“V-shaped rallies are not the norm, there is no need to rush into new positions,” Zimmerman said. “Prices inside these wicks are often reconsidered and the focus is on placing positions in coins that are showing relative strength during this time.”

“Even assuming the bottom has arrived, we are likely to experience some volatility first,” he added.