By Samuel Indyk
Investing.com – The price of Bitcoin showed signs of bottoming out after a 10% bounce off levels hit overnight.
The largest cryptocurrency by market cap fell to a low below $49,000 before a firm bounce to its current intraday high above $53,000.
During Asia-Pacific trade, Bitcoin fell to its lowest level since March 5th but has since rebounded and is on track for its biggest one-day gain since March 1st.
Other cryptocurrencies have also shown signs of stabilising with Ethereum testing $2,500 to the upside.
However, the same cannot be said for Dogecoin which has continued to pull back after hitting $0.42 last week. Dogecoin is trading lower by 3% over the last 24 hours and is now holding just above $0.26.
Cryptocurrency rebound
Today’s rebound comes after the correction last week that saw the price of Bitcoin drop heavily last weekend and then again on Friday. Friday’s sell-off came amid fears the US President Biden will introduce a higher rate of capital gains tax for the most wealthy individuals.
The lower levels have tempted buyers to come back in and today’s rally will provide some comfort to those who were fearing a larger downturn.
“What does the future hodl?”
Over the weekend, the Tesla (NASDAQ:TSLA) CEO Elon Musk posted a somewhat cryptic tweet ahead of Tesla’s earnings after market. The company, which announced they had bought $1.5bln worth of Bitcoin earlier this year, is set to report quarterly earnings after the bell.
“What does the future hodl?” Musk tweeted on Saturday. ‘Hodl’ being a term used by retail traders to describe holding onto an asset for the long term, particularly cryptocurrencies.
All eyes will be on Tesla’s earnings to see if the company has added to their Bitcoin holdings or whether the announcement that they will accept Bitcoin as payment for vehicles has been a success so far.
At 12:00BST, Bitcoin is trading at $53,318, up over 10% from its lowest levels hit during Asia-Pacific trading hours.