The cryptocurrency Bitcoin showed some positive signs for investors after a series of consecutive losses, as the currency suddenly recovered in Monday's trading.
According to Arab Net, this pattern emerged on October 13, when Bitcoin bounced back after falling 5% during the trading session to climb more than 1%.
Overshadowing the change was a 5 percentage point improvement in the S&P 500 stock index on the same day, a rebound that left strategists dazed.
This scenario was repeated earlier, about 15 times since December 2018 when Bitcoin wiped out at least a 5% drop on the day to end with a gain of at least 1%. Each time, the average rise was 19% over the next 60 days from these signals, according to data compiled by Bloomberg.
Bitcoin fell to around $18.201 last Thursday before closing at around $19,387.
The cryptocurrency fell 58% in 2022, driven by the interest rate hike from the US Federal Reserve, which drained liquidity from the markets in the fight against inflation.
John Toro, head of trading at the Sydney Digital Asset Exchange Independent Depository, said: “The current inflationary environment remains challenging for risky assets, including cryptocurrencies, but Bitcoin continues to respect the $18,000 support level.
