Bitcoin bounced back to $39,000 on Tuesday as many buyers thought the cryptocurrency already hit its bottom.
It rose 2% and traded at $ 39,267, before dropping again.
Back in November, it hit an all-time high of almost $69,000, but Ethereum was the one that performed best, gaining 5% to $2,814.
Solana also rose 15% in the last 24 hours.
Expectations of tighter monetary policy fueled the slump in crypto assets, but confidence and risk appetite seem to be making a comeback. That is why Bitcoin traded sideways last week, with uncharacteristically low volatility.
In addition, Bitcoin has established a strong correlation with the US stock market, especially with the tech-heavy Nasdaq 100. However, when the stock market isn't trending strongly in either direction, BTC moves on its own, said Nathan Batchelor, an analyst at SIMETRI Research.
"What makes crypto unique is that they have their own pulling forces. When the stock market moves, we must remember that its personality is enhanced," Batchelor noted
DailyFX strategist Nicholas Cawley listed $39,600 as an important level, as it is where he expects Bitcoin to fluctuate (between $32,980 and $39,620).
