BTC is trading at $44,126 at the time of writing and has increased by about 6% in one day. ETH, on the other hand, is trading at $3,167 and is up 6% in one day.
Bitcoin's rally on Monday allowed the coin's price to rise above the 50-day moving average, an important level on the chart often watched by technical analysts. This move marks the first time since November last year that Bitcoin has traded above the key level and could indicate that more bullish chart structure is under construction.
Vijay Ayyar, Asia Pacific Head of crypto exchange Luno, talked about the bullish sign for BTC in a comment to Bloomberg today.
“Bitcoin has broken some key levels and downtrend line and is showing bullish signs.”
“BTC is capped at the 50-DMA and needs to close above it. The short-term target could be the $46,000-47,000 region.”
BTC rallied above $40,000 on Friday after trading below the psychologically important level for two weeks, while ETH rallied above $3,000 the next day.
Ethereum's gains come at a time when other smart contract protocols' tokens are posting even bigger gains, with Solana's SOL token up 6%, Polkadot's DOT token 7% and Avalanche's AVAX token up 11% in the last 24 hours.
Commenting on Twitter, Eric Wall, Chief Investment Officer of Arcane Assets, stated that between $40,000 and $43,000 is Fomo.
"People selling in the fear of missing out (Fomo) zone for $40,000 to $43,000 Bitcoin and the $33,000 to $35,000 zone may panic buy."
Meanwhile, the moves seen in the crypto market this week come after a volatile week for many tech stocks. Among the biggest losers is Meta, owner of Fecebook, which lost $200 billion in market value in the week of disappointing results. On the other hand, e-commerce giant Amazon added the same amount of value to its market cap after sharing better-than-expected results.