BITCOIN CONTINUES IN AN UPTREND

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The cryptocurrency market continued its historic gain last week, with Bitcoin driving the push. Coins and tokens reached their highest price in months, pushing the entire value of the cryptocurrency market above the $1 trillion barrier. Almost 300 million dollars' worth of probable short positions were liquidated, according to coin glass. Even while this was small in comparison to the billions of dollars in short liquidation the week before, the squeeze impact persisted. The trader who predicted that the cryptocurrency market would decline had to repurchase their wager in order to limit their losses, and this purchasing pressure helped the surge.

Of of the top 100 cryptocurrencies, Aptos experienced the biggest rally, rising more than 60% in the past week. The popularity of Aptos in Asia, particularly China, and the short squeeze both appeared to have contributed to this surge. China's new year occurred a few days ago, and this may have contributed to the APTs pump. In addition, there don't appear to be any crypto-specific forces driving the market higher. There have been rumors that whales are controlling the market in order to profit. This was due to the prevalence of altcoins that pump and have VC unlock.

As the most of you are aware, the cryptocurrency market and stock market have a strong relationship. As it turned out, the stock market has been on a rise over the past few days. This is due to the fact that investors anticipate the FED to announce a pause or rate cut at its upcoming meeting on February 1. Because central banks have been gradually raising interest rates to combat inflation and because inflation has been down in recent months, investors have this anticipation. The problem is that the Central Bank now thinks that continued labor shortages could cause inflation to increase.

The overheating of the cryptocurrency market is fairly obvious. The majority of cryptocurrencies are not regularly over-bought on long-term time frames, not simply short-term time frames, notwithstanding the slight correction that occurred last week. In addition, it appears that a divergence is developing. The price of bitcoin is currently trading above the Bollinger band range, while the weekly chart's RSI is over 80. Both of these indicate that BTC is long-term overbought. BTC's trading volume has been falling while its price has been rising in the meantime. Price and volume are diverging, which signals that a turn around is imminent.