Cryptocurrency investors breathed a sigh of relief on April 26 as the sharp reversal in Bitcoin (BTC) price was accompanied by a market-wide rebound, with most altcoins seeing green. It is likely that the breakout was aided by bullish sentiments from JPMorgan analysts and PayPal’s announcement that demand to buy cryptocurrencies had exceeded expectations.
Data from Cointelegraph Markets and TradingView shows that after bouncing off a low near $ 47,000 on Sunday evening, Bitcoin rose back above the $ 50,000 support level in the early trading hours on Monday and surged above $ 53,500 by noon, while Ether ETH) recaptured USD 2,500.
Last week’s market retreat did little to slow mainstream adoption of cryptocurrencies, as stories like NFL draft Trevor Lawrence, who signed an endorsement deal with crypto portfolio tracking platform Blockfolio, and hotels in Nigeria announce plans to accept Bitcoin as a means of payment on a daily basis.
On-chain analysis tracks Bitcoin’s growing upward momentum
Data from Glassnode shows that the chain’s transmission volume and average transaction fees for the Bitcoin network hit new highs in the previous week as the network continues to recover from congestion in the mempools due to a decreased hashrate due to a power outage in China.
Analysis of the age groups for spent spending, which shows how long BTC has sat in a wallet, shows that newer token holders were rocked by the recent decline, while wallets held for more than a month saw a decline in Recorded transaction activity.
The data also shows that wallets held for more than 6 months have seen no significant spike in spending since the February market decline.
Another upward trend can be seen in the accumulation of miners, which, according to Glassnode, has reached its highest level since mid-2018.
Overall, the analysis shows that it was the newer hands in the market that were rocked by last week’s correction, while the more experienced crypto traders were happy to accumulate BTC from those who were concerned about a further drop in prices.
Altcoins rise as bitcoin finds its booth
Bitcoin’s struggles over the past week have allowed Altcoins to take a step forward and gain market share as a number of coins have hit new all-time highs and trading volumes on decentralized exchanges on the uptrend.
Ethereum-based DeFi lending platform Compound (COMP) rose 17% overnight to hit a new record high of $ 671, while Layer 2 solution Polygon (MATIC) rose 68% to a new all-time high of $ 0.576.
Solana-based decentralized exchange serum (SRM) saw a new high of $ 11.47 thanks to increased activity on Solana’s blockchain network (SOL).
The Solana price rose over 120% over the past week, hitting a new high of $ 48.46 on April 25 as its ecosystem continues to grow and new projects are launched for this Layer 1 Ethereum competitor.
The market capitalization for cryptocurrencies is now at $ 2.004 trillion, and the dominance rate of Bitcoin is 50.3%.
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